What is the story about?
Days after quick commerce major Zepto filed draft papers for a reportedly over $1.3 billion IPO via the confidential route, cofounder Aadit Palicha said the move has been positive for the company as confidential filings allow companies operating in high-growth, high-frequency markets to initiate the SEBI process early, even as their financials are still evolving.
Speaking at Samvad, Palicha explained, “For younger companies, the difference between one quarter and the next can be significant—sometimes as much as 50% growth."
He added that confidential filings help firms complete regulatory reviews while keeping their most up-to-date financial picture intact for investor discussions.
He added that for businesses like Zepto operating in competitive industries, confidential filings help avoid prematurely putting sensitive information into the public domain, while still allowing companies to prepare for a potential IPO.
“It’s about initiating the process without unnecessary risk,” he said.
The Palicha-led company plans to raise around ₹11,000 Cr through a fresh issue of shares, with an offer for sale expected from early investors. Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23.
Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are the bankers for the issue.
The fundraise comes amid an intense battle in the quick commerce space, where Zepto competes with Swiggy Instamart and Eternal’s Blinkit—both flush with funds. Swiggy recently raised
₹
10,000 Cr via QIP for its quick commerce push, while Eternal garnered ₹8,500 Cr through its QIP in November 2024. The sector has also seen rising scrutiny around labour practices, with gig workers recently mounting protests over payouts, incentives and delivery timelines against Zepto, Blinkit and Instamart.
In October, Zepto had raised $450 million in a round mix of primary and secondary investments led by US-based pension fund CalPERS. The IPO proceeds are expected to give the company a war chest to take on rivals including Amazon, Flipkart Minutes and BigBasket.
If listing goes as expected by September next year, the top three quick commerce players in the country would be listed. The milestone would come within six years of Zepto’s incorporation in 2020.
Founded by Palicha and Kaivalya Vohra, the company started in mid-2020 under the brand KiranaKart, offering 45-minute deliveries using local kirana stores, before pivoting to a dark-store model. In April 2021, a rebranded Zepto launched in Mumbai to offer 10-minute deliveries and has since scaled to most major cities.
The past year saw cost-cutting after aggressive expansion, but post the October fundraise the company has resumed expansion and removed handling and delivery fees for most orders.
Overall, Zepto has raised over $2.45 billion from investors including Lightspeed Venture Partners, Y Combinator and Nexus Venture Partners.
On the financial front, Zepto is yet to file FY25 numbers. In FY24, it reported an operating revenue of ₹4,454 crore on a net loss of ₹1,249 crore.
Speaking at Samvad, Palicha explained, “For younger companies, the difference between one quarter and the next can be significant—sometimes as much as 50% growth."
He added that confidential filings help firms complete regulatory reviews while keeping their most up-to-date financial picture intact for investor discussions.
He added that for businesses like Zepto operating in competitive industries, confidential filings help avoid prematurely putting sensitive information into the public domain, while still allowing companies to prepare for a potential IPO.
“It’s about initiating the process without unnecessary risk,” he said.
The Palicha-led company plans to raise around ₹11,000 Cr through a fresh issue of shares, with an offer for sale expected from early investors. Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23.
Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are the bankers for the issue.
The fundraise comes amid an intense battle in the quick commerce space, where Zepto competes with Swiggy Instamart and Eternal’s Blinkit—both flush with funds. Swiggy recently raised
In October, Zepto had raised $450 million in a round mix of primary and secondary investments led by US-based pension fund CalPERS. The IPO proceeds are expected to give the company a war chest to take on rivals including Amazon, Flipkart Minutes and BigBasket.
If listing goes as expected by September next year, the top three quick commerce players in the country would be listed. The milestone would come within six years of Zepto’s incorporation in 2020.
Founded by Palicha and Kaivalya Vohra, the company started in mid-2020 under the brand KiranaKart, offering 45-minute deliveries using local kirana stores, before pivoting to a dark-store model. In April 2021, a rebranded Zepto launched in Mumbai to offer 10-minute deliveries and has since scaled to most major cities.
The past year saw cost-cutting after aggressive expansion, but post the October fundraise the company has resumed expansion and removed handling and delivery fees for most orders.
Overall, Zepto has raised over $2.45 billion from investors including Lightspeed Venture Partners, Y Combinator and Nexus Venture Partners.
On the financial front, Zepto is yet to file FY25 numbers. In FY24, it reported an operating revenue of ₹4,454 crore on a net loss of ₹1,249 crore.
