Zepto files confidentially for $1.3 billion IPO as losses triple
Zepto has filed for a massive $1.3 billion IPO, but with losses tripling to ₹3,367 crore, the quick-commerce unicorn faces a brutal road ahead.
Aadit Palicha and Kaivalya Vohra, co-founders of Zepto
Zepto just bet its future on a $1.3 billion public listing, but the price of admission is a staggering ₹3,367 crore net loss.
The 10-minute grocery delivery darling has officially initiated its transition to the public markets, filing confidential draft papers with SEBI to raise approximately ₹11,000 crore ($1.3 billion) in fresh capital. While the move positions Zepto as one of the youngest startups to attempt a listing of this magnitude, the underlying financials reveal a company burning cash at an unprecedented rate to buy its seat at the table.
The Cost of Hypergrowth
Zepto is growing faster than almost any peer in the Indian ecosystem, but the efficiency narrative is cracking. The company reported FY25 revenue of ₹9,669 crore, a massive 129% jump from the previous year. However, this growth came with a heavy tax: net losses nearly tripled year-over-year to ₹3,367 crore.
The startup is currently valued at roughly $7 billion following its October fundraise, but it faces a liquidity disadvantage. While Zepto holds approximately ₹7,000 crore in cash, its listed rivals, Zomato (Blinkit) and Swiggy, are sitting on war chests of ₹17,000–18,000 crore each.
The Three-Horse Race
The IPO is less about an exit and more about survival in a brutal market. Blinkit currently dominates the sector with an estimated 44-46% market share, forcing Zepto (~29%) and Swiggy Instamart (~24%) to spend aggressively on discounts and dark store expansion to catch up.
The skepticism from incumbents is palpable. As Blinkit CEO Albinder Dhindsa recently warned, the sector will soon "face questions around sustainable growth" as public market appetite for balance-sheet funded expansion dries up.
Zepto must prove it’s not just burning cash. With the IPO likely slated for mid-to-late 2026, the next six months will be critical. Zepto must demonstrate it can narrow that ₹3,367 crore loss while maintaining its triple-digit growth. If they fail to improve unit economics before the roadshow, institutional investors may balk at the $1.3 billion ask.
