Indian quick commerce firm Zepto is preparing to submit draft documents for an initial public offering (IPO), according to a report by the Economic Times (ET).
The filing is expected to be made through the confidential route, people familiar with the matter told ET.
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The four-year-old company is targeting a stock market debut in the July-September quarter of next year.
Sources indicated that the total IPO size could be around $1.3bn, or roughly Rs116.8bn, which would include a secondary component through an offer for sale by early investors, alongside the primary issuance.
Regulatory disclosures with the Registrar of Companies show that Zepto’s shareholders approved a proposal at an extraordinary general meeting to raise up to Rs110bn through the issue of new shares.
The company is expected to submit its draft red herring prospectus under the confidential pre-filing framework of the Securities and Exchange Board of India, which allows flexibility to revise the issue size at a later stage.
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By GlobalDataFor the financial year ended March 2025, Zepto reported revenue of Rs96.69bn, representing a 129% increase year-on-year.
Net loss for the period widened to Rs33.67bn, compared with Rs12.14bn in the previous year.
The company has appointed Morgan Stanley as the lead banker for the proposed IPO.
Other banks involved include Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal.
Ahead of the filing, Zepto has undertaken a series of cost-cutting steps.
These include trimming its workforce by about 800–900 positions through layoffs and attrition, alongside reductions in customer acquisition spending and corporate overheads.
As of late November, the company held cash reserves of around Rs70bn.
Zepto operates in India’s fast-growing quick commerce market, competing with Blinkit, owned by listed company Eternal, and Instamart, which is run by publicly listed Swiggy.
Both Eternal and Swiggy currently hold cash balances of about Rs170–180bn following recent fundraising rounds.
In October, Zepto closed a $450m funding round led by CalPERS, with approximately $300m raised as primary capital.
In June last year, Zepto raised $665m in a funding, led by Avenir Growth Capital and Lightspeed Venture Partners.
As of the end of September, the company operated around 1,000–1,100 dark stores across India, broadly in line with Instamart, while Blinkit had more than 1,800 such facilities.
