Quick commerce startup Zepto IPO size to $800 million-$1 billion: sources
Zepto IPO: The fast-commerce company Zepto is contemplating increasing the size of its public offering to $800 million-$1 billion, including secondaries, according to sources familiar with the matter.
Recent discussions between CEO Aadit Palicha and top mutual funds have shed light on Zepto’s listing plans. Palicha projected the company’s gross sales to reach $5.5 billion in the final quarter of FY26, while also achieving positive EBITDA (excluding ESOPs), sources revealed.
Zepto initiated its initial public offering (IPO) plan last year, aiming to raise around $450 million in primary capital. Leading the charge are Goldman Sachs and Morgan Stanley as the lead bankers.
The exact valuation of Zepto in the listing is yet to be determined, with its most recent valuation standing at $5 billion.
According to one source, “There will likely be an increase in the offering size, potentially reaching $800 million or more, with a significant portion of shares worth $300-400 million being sold in OFS. This will be accompanied by an increase in primary fundraising through the issuance of new shares.”
Despite Zepto’s recent success, the company has faced challenges in the hypercompetitive space, burning through approximately Rs 1,000-1,100 crore in the last three months. Zepto recently reached $3 billion in gross sales, trailing behind Blinkit’s $3.7 billion, while also expanding its dark store network.
Blinkit, on the other hand, saw an increase in losses in the December quarter to Rs 103 crore due to aggressive expansion, impacting the overall profitability of its parent company, Zomato.
As the sole standalone player in the quick commerce space, Zepto must increase its domestic ownership to a minimum of 40% before proceeding with an IPO. To meet this requirement, the company has initiated the merger of its Singapore parent unit with an Indian entity to relocate its domicile.
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