Quick commerce startup Zepto has taken a major step towards going public by filing draft IPO papers with market regulator Securities and Exchange Board of India (SEBI) through the confidential pre-filing route, according to people familiar with the matter.

The company is seeking to raise up to ₹11,000 crore (around $1.2 billion). Most of the issue is expected to be a fresh equity raise, while some early investors are likely to partially exit through stake sales. Zepto declined to comment on the development.

Young startup eyes stock market debut

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto is targeting a stock market listing sometime next year, which could make it one of the youngest Indian startups to debut on the exchanges.

The confidential filing route allows companies to seek regulatory feedback without publicly disclosing financial details, offering flexibility amid changing market conditions. Several large firms have increasingly adopted this approach ahead of IPOs.

Battling giants in quick commerce space

Backed by investors such as General Catalyst and Lightspeed, Zepto competes with Eternal-owned Blinkit and Swiggy’s Instamart in India’s fast-growing quick commerce segment. While Blinkit currently dominates the market with nearly a 50% share, analysts at Morgan Stanley estimate the sector could grow to $57 billion by 2030.

The 10-minute delivery model has expanded beyond groceries to categories such as electronics, toys, jewellery and small appliances, driven by strong consumer adoption post-pandemic.

Strong private funding, rising valuation

In October, Zepto raised $450 million in a pre-IPO funding round led by US pension fund CalPERS, valuing the company at $7 billion, about 40% higher than its previous valuation of $5 billion. Overall, the Bengaluru-based company has raised close to $2 billion since inception. Zepto became a unicorn in August 2023 after raising over $200 million at a valuation of $1.4 billion.

Scale, losses and growth metrics

As of September 2025, Zepto operated more than 900 dark stores across major Indian cities. Despite rapid expansion, the company remains loss-making, with an estimated cash burn of ₹1,000–1,100 crore. However, it reported gross sales of about $3 billion (₹26,000 crore), underlining strong demand for its ultra-fast delivery services.

Part of broader IPO wave

Zepto’s IPO push comes amid a broader surge in India’s public markets, with startups such as PhonePe, Flipkart and Oyo also preparing listings. Several consumer internet firms, including Lenskart, Meesho and Groww, have already tapped the markets this year, offering exits to early investors.

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