Zepto IPO Gets SEBI Nod: Raising 9000 Cr.

A quick e-commerce startup, which was previously valued at $7 billion, is planning for its listing in the public market. Zepto IPO got key approvals from the SEBI. In just 5 years, an experimented startup in the pandemic era is competing to be the rapid grocery delivery and is now to IPO bound. Let’s discuss the Zepto IPO details and will the company be profitable after the IPO?

Zepto IPO Details

Zepto IPO Issue Size

According to Moneycontrol, the expected issue could be between $800M and $1B (around Rs 7,500-9,300 cr). Now this is likely revised from an earlier target of Rs 11,000-12,000 cr. The structure would be a mix of OFS and Fresh issue.

Zepto IPO Date

While the company has not officially announced an IPO launch date yet. However, Zepto gets SEBI approvals, and also reports suggest Zepto possibly moves toward listing within the next 60-90 days after filing its updated DRHP.

Zepto IPO GMP

As of now, there is no active Grey Market Premium (GMP) available because the IPO price band and subscription dates have not been officially announced.

Zepto IPO DRHP

Zepto first filed its Draft Red Herring Prospectus (DRHP) confidentially with SEBI in late 2025. After receiving SEBI’s nod, Zepto is now expected to file an Updated DRHP.  

Zepto IPO price band

The official IPO price band has not been announced yet. Pricing details are expected to be disclosed closer to the public issue launch after the updated DRHP filing and regulatory review process.

Zepto IPO lead managers

Shardul Amarchand Mangaldas is advising the bookrunning lead managers. 

Zepto IPO legal advisor

Cyril Amarchand Mangaldas is advising Zepto on its IPO, while Latham & Watkins Singapore is acting as international legal counsel. 

Zepto's Revenue is Up 129%, Losses Reach Rs 3,367 Cr. 

Zepto’s total sales jumped to nearly Rs 9,669 cr in FY25, compared to Rs 4,224 cr in FY24, a massive growth of around 129% YoY. The reason behind this huge growth could be the expansion into cities, having more dark stores and increased order volumes, and it might also be due to expanding into categories like electronics, groceries, beauty and café offerings. 

The strategy helped revenue growth, but it also sharply increased operating costs. The costs are rising so fast mainly due to delivery & logistics costs, employee benefit expenses or dark store expansion costs.

However, losses also widened significantly. Net losses increased to Rs 3,367 cr in FY25 from Rs 1,215 cr in FY24. Here, the huge growth in sales could likely be through aggressive spending rather than operational profitability.

The widening loss ratio reflects that although Zepto is growing rapidly, the increase in scale has possibly not yet helped the company improve its profit margins. In fact, the company lost more money for every additional rupee earned in FY25 compared to FY24. 

Why Are Zepto’s Losses Rising?

The several possible factors driving these losses:

• Heavy spending on discounts, cashback, and free delivery offers to attract and retain customers

• Rapid expansion of dark stores, increasing rent, inventory, staffing, and operational costs

• Rising delivery and logistics expenses to maintain 10-minute delivery services

• Strong competition from Blinkit, Swiggy Instamart, and Flipkart Minutes, pushing the company to focus more on market share

• Higher marketing and customer acquisition spending ahead of its IPO

• Increasing technology, infrastructure, and employee-related expenses as operations scale rapidly

Also Read: Zepto Business Model: Detailed Analysis

Can Zepto Become Profitable After the IPO? 

Zepto is likely focusing on reducing cash burn and improving unit economics as it moves toward profitability ahead of its IPO. While the company is still loss-making, economic times suggest it is targeting EBITDA breakeven by FY28 and full profitability by FY29 as it scales operations and improves delivery efficiency.

The EBITDA loss in Q4 FY26 was reported around Rs.55-60 cr, which is a decrease from around Rs.100-110 cr in July-September in FY25.

Also, the cash burn reduced to Rs.850 - Rs.900 cr in the Jan-March period from around Rs.1200 - Rs.1300 cr in previous quarters. This is driven by tighter cost controls and improving unit economics. However, competition from Blinkit, Swiggy Instamart, and Flipkart Minutes is possibly making it difficult for margins to improve.