Quick-commerce startup Zepto is gearing up to file draft IPO papers with Sebi within the next 2–3 weeks, reviving its public-market plans as it looks to raise
$450–500 million ( Rs 4,000–4,440 crore), people aware of the development told ET. The Bengaluru-based firm is likely to opt for the confidential filing route, giving it flexibility to tweak terms ahead of listing. The startup is targeting a July–September 2026 debut on Indian exchanges, with Morgan Stanley leading a syndicate including Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal, sources said. The issue will include fresh issuance and an OFS (offer for sale) by early investors. However, the final fundraising size may be revised based on cash burn closer to listing. Fresh Funding, Heavy Burn, Hard Reset Zepto recently secured $450 million in private funding, reinforcing its balance sheet amid the cash-intensive quick-commerce race. The company has already burned through a large portion of that capital, industry executives said, prompting internal tightening. To bring down costs, Zepto has:
- Cut 800–900 roles, including contract and full-time staff
- Reduced customer acquisition spends, shifting focus to retention
- Lowered delivery charges & scrapped handling fees to boost orders
- Slowed dark-store expansion and scaled down Zepto Café
These steps have reportedly trimmed monthly burn to Rs 200–300 crore from Rs 400–500 crore earlier.
Racing Swiggy & Blinkit to Public Markets
Zepto’s renewed IPO push comes as rivals also tap equity markets:
- Swiggy is preparing a $1.1 billion QIP, its second public-market fundraise post-IPO, and expects ~$270 million from its Rapido stake sale.
- Blinkit parent Eternal raised $1 billion via QIP last year and sits on over $2 billion in cash as of September, according to Bank of America Securities.
What Zepto Says
In an interview with ET last month, co-founder Aadit Palicha said strong growth and improving store-level profitability encouraged private fundraising before IPO filing:
“We saw an opportunity to strengthen our balance sheet in a relatively less painful manner… We’ll be able to raise about $500 million privately before going public,” Palicha said.
“If you want to raise $600–700 million, that can only come in an IPO.”
Industry insiders say Zepto now handles 1.6–1.7 million orders daily, with an aim to double order volume every year.
