Zepto the quick commerce startup led by Aadit Palicha, has received approval from India’s market regulator Securities and Exchange Board of India (SEBI) for its much-awaited initial public offering (IPO), bringing the company a step closer to becoming one of the biggest startup listings in India this year.
According to reports, SEBI has issued an observation letter to the Bengaluru-based company, allowing it to move ahead with the IPO process. Zepto is now expected to file an updated draft red herring prospectus (DRHP) within the next six to eight weeks.
The IPO is estimated to be worth between Rs 8,000 crore and Rs 9,000 crore, with several reports valuing the offering at nearly $1 billion. While the final pricing and issue size are yet to be officially announced, the public offering is likely to include a significant fresh issue of shares along with an offer-for-sale component from some early investors.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly become one of the leading names in India’s booming quick commerce industry, where companies promise ultra-fast delivery of groceries and daily essentials.
However, the quick commerce sector has also faced growing regulatory attention in recent months. Earlier this year, the Union Labour Ministry reportedly asked companies including Blinkit, Zepto, and Instamart to reduce emphasis on fixed-time delivery claims due to concerns around rider safety, unsafe driving practices, and work pressure on delivery partners.
Competition in the sector has intensified significantly as companies continue to spend aggressively on discounts, expansion, dark stores, and faster delivery infrastructure to retain customers.
Global e-commerce giant Amazon has also announced plans to expand Amazon Now to 100 cities while investing Rs 2,800 crore to improve operations and worker safety in India.
Meanwhile, Eternal, which owns Blinkit, infused Rs 450 crore into the quick commerce business earlier this year through a rights issue.
Zepto’s public listing is expected to place it alongside listed rivals such as Swiggy and Eternal, further strengthening its financial position as the battle for market share intensifies.
The startup last raised $450 million in October 2025 at a valuation of $7 billion in a funding round led by California Public Employees’ Retirement System (CalPERS). According to reports, Zepto has raised over $2.45 billion so far from investors including General Catalyst, DST Global, and Lightspeed Venture Partners.
Ahead of the IPO, the company has already taken several strategic steps, including shifting its domicile from Singapore back to India and converting itself from Zepto Private Limited into Zepto Limited.
The company’s IPO is expected to hit the market between July and September 2026 and could become one of India’s largest internet startup listings since Swiggy.
On the financial side, Zepto reported total income of Rs 9,668.8 crore for the financial year ending March 2025, reflecting a massive 129% growth compared to the previous year. However, the company’s net losses also widened to Rs 3,367.3 crore from Rs 1,214.7 crore a year earlier as it continued aggressive expansion efforts.
As part of refining its customer strategy ahead of the public listing, the startup also shut down its subscription and loyalty programme, Zepto Daily, in February this year.
Desk
Verified JournalistDiscover the latest startup, business, and funding news. Get insights on trends, IPOs, mergers, and acquisitions. Perfect for entrepreneurs, investors.
