Zepto Files UDRHP Raising Rs 8010 Cr

TL;DR 

Zepto filed its Updated DRHP on June 8, 2026, bringing its IPO one step closer. The company is expected to target a Zepto valuation of $7–8 billion, backed by FY26 revenue of Rs 22,624 crore and strong growth in India's quick-commerce market. While revenue has more than doubled year-on-year, investors will closely watch whether Zepto can improve profitability and justify its premium valuation. 

Introduction 

Zepto has finally filed its Updated DRHP on 8th June, 2026. The step is now likely bringing one of India's most anticipated startup IPOs closer to reality. The filing reveals a company that has grown revenue more than fivefold in two years but is still reporting losses. Here's everything investors need to know about the Zepto IPO.

ZEPTO IPO Timeline

Zepto IPO UDRHP

The company filed its updated DRHP with SEBI, with the issue size expected to be around Rs 10,000 cr.

Zepto ipo issue size

The company plans to raise approx. Rs 8,010 cr through a fresh issue of equity shares. In addition, existing investors will sell up to 11.35 crore shares through an Offer for Sale (OFS). Also, Zepto may undertake a pre-IPO placement of up to Rs 1,602 cr before filing the final Red Herring Prospectus (RHP). The Zepto IPO issue size could likely be around Rs 10000 cr.

Zepto Valuation and Price band

Valuation could likely be $7-8 Billion. Although it is yet to be announced in the updated DRHP.

Zepto IPO BRLMs

For managing the Zepto IPO process, 7 book-running lead managers were appointed, such as Axis Capital Limited, Morgan Stanley, Goldman Sachs (India), Motilal Oswal Investment Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and IIFL Capital Services Limited (formerly IIFL Securities).

Who will be participating in the Zepto IPO OFS?

The founders, Aadit Palicha and Kaivalya Vohra, are likely not participating in the OFS, which could be a positive aspect for the IPO ahead. However, 6 existing investors are participating with a total of 11.35 crore shares (113.47 million shares).

Most investors are selling only around 5-6% of their holdings, likely indicating a partial profit booking rather than a complete exit. This could be a small liquidity part while remaining significant shareholder in Zepto after its IPO. 

In this, Nexus Ventures is the largest seller in the OFS, offering nearly 8.78 crore shares through its two investment entities, which are Nexus Ventures VI Holdings and VII Holdings. While Razor Ventures Zepto LLC is selling the highest proportion of its stake at 6.52%.

Hence, it could be a stronger angle for readers, as it tells that existing investors are reducing their stakes modestly but still retaining confidence in the growth of Zepto's long-term journey.

Where will Zepto's IPO money be used?

Out of the Rs 8,010 crore fresh issue, Rs 3,364 crore, or nearly 42% of the fresh issue proceeds, is being allocated toward dark store expansion and lease-related expenses alone. Meanwhile, investments in technology and marketing indicate that Zepto is prioritising growth and customer retention as it prepares for the next phase of expansion.

Zepto Financials At The Time Of Filing

Source: Zepto UPDATED DRAFT RED HERRING PROSPECTUS - I 

• Zepto revenue grew from Rs.4,455 cr in FY24 to Rs.22,624 cr in FY26, with a 2-year CAGR of nearly 125%. Whereas around 104% revenue growth in FY26.

• Annual transacting users increased from 1.06 cr in FY24 to 4.80 cr in FY26.

• Advertisement spending also increased to Rs.1,389 crore in FY26 as Zepto continued investing in customer acquisition and brand building. 

• However, net losses widened to -Rs.5,905 cr in FY26, reflecting there could be a company using an aggressive expansion strategy. 

• Free cash flow improved from -Rs.5,324 cr in FY25 to -Rs.4,330 cr in FY26, indicating better operating leverage despite continued losses. 

Overall, Zepto revenue climbed faster than losses in FY26. The net loss margin improved to 26.1%. One encouraging sign could be that cash burn per order improved significantly, with free cash flow per order improving from -Rs.160.56 in FY25 to -Rs.67.63 in FY26. It could show that unit economics are gradually improving as the business scales.

Key Risks of Investing in Zepto IPO

• Continued Losses

Zepto’s profitability remains a challenge, with a net loss of Rs. 5,905 crore in FY26.

• Intense Competition

Competition from Blinkit, Instamart, BigBasket, and other players could likely impact market share and margins. Although, Zepto is in second position in the quick commerce industry.

• Capital-Intensive Model

Significant investments in dark stores, logistics, and technology are required to sustain growth. 

• Execution Risk

Delays in expansion or weaker-than-expected demand could affect future performance. 

Opportunities of Investing in Zepto IPO

• Strong Revenue Growth

Revenue grew from Rs.4,455 cr in FY24 to Rs.22,624 cr in FY26.

• Growing User Base 

Annual transacting users increased from 1.06 cr to 4.80 cr in two years.

• Improving Unit Economics

Net loss margin improved from 42.3% in FY25 to 26.1% in FY26.

• Expanding Quick-Commerce Market

Zepto is likely well-positioned to benefit from India's rapidly growing quick-commerce industry.

• Founder Confidence

Founders are not participating in the OFS. This could reflect confidence in the company's long-term growth prospects.

Also Read: Zepto NOV nears $1 billion Before IPO Filing, Good Sign?