Quick commerce firm Zepto has received approval from its board of directors for an initial public offering (IPO) worth ₹11,000 crore, according to a report by Entrackr. The proposed public issue is expected to comprise a mix of fresh equity issuance and an offer for sale (OFS).
According to the Entrackr report, Zepto is likely to file its draft red herring prospectus (DRHP) under the confidential route as early as this week. The development comes shortly after the company raised $450 million in fresh funding, taking its total capital raised to $2.3 billion. The latest funding round valued the quick commerce player at around $7 billion.
In a separate corporate development, Zepto has appointed its co-founders Aadit Palicha and Kaivalya Vohra, along with Chief Financial Officer Ramesh Bafna, as whole-time directors. The appointments were approved by shareholders at an extraordinary general meeting held on December 23.
Financially, Zepto reported a sharp widening of losses in FY25 amid intensifying competition in the quick commerce sector. The company’s net loss surged 177% year-on-year to ₹3,367.3 crore in FY25, compared with a loss of ₹1,214.7 crore in FY24.
Despite the rising losses, Zepto’s revenue growth remained strong. The company’s total sales rose 129% year-on-year to ₹9,668 crore in FY25 from ₹4,223 crore in the previous fiscal.
However, industry experts note that operational revenue in quick commerce is typically recognised at about 15–20% of gross merchandise value (GMV). Based on this benchmark, Zepto’s operational revenue for FY25 is estimated to be in the range of ₹1,500 crore to ₹2,000 crore.
In comparison, Blinkit and Swiggy Instamart reported revenue from operations of ₹5,206 crore and ₹2,252 crore, respectively, in FY25. During the same period, Swiggy Instamart posted an adjusted EBITDA loss of ₹2,095 crore, significantly higher than market leader Blinkit, which reported an adjusted EBITDA loss of ₹292 crore.
