Zepto has filed updated IPO papers in India, giving investors a closer look at the quick-commerce startup’s growth, advertising revenue, and losses before its planned public listing. The company plans to raise up to ₹80.1 billion, or about $837 million, through a fresh issue of shares.
The filing comes as Zepto competes with Zomato-owned Blinkit, Swiggy’s Instamart, Amazon, and Walmart-backed Flipkart in India’s quick-commerce market. According to TechCrunch, the IPO could be valued at about $1 billion.
Advertising Revenue Grows Faster Than Sales
Zepto’s advertising revenue rose more than 151% year over year to ₹16.4 billion, or about $171 million, in fiscal 2026. That outpaced its 104% increase in operating revenue to ₹115.5 billion, or around $2.4 billion.
The growth shows that Zepto is earning more from ads while grocery delivery remains its main business. The model resembles how Amazon built an advertising business by selling visibility to merchants on its platform.
Zepto processed more than 640 million orders in fiscal 2026, nearly double the previous year. Annual transacting users rose to almost 48 million, while its store network expanded to 1,139 locations.
Losses Continue As IPO Nears
Zepto remains loss-making despite its rapid growth. The company reported a net loss of ₹59.1 billion, or about $617 million, in fiscal 2026, compared with ₹47.0 billion, or around $492 million, a year earlier.
In its updated draft filing, Zepto said it may continue to incur losses and may not sustain its historical growth rates. The company also said it may raise up to ₹16.02 billion, or about $167 million, through a pre-IPO placement before listing.
The IPO will include an offer-for-sale of up to 113.5 million shares by existing investors, including Nexus Venture Partners, Contrary, and Razor Ventures. Several other backers, including Y Combinator-affiliated funds, Lightspeed, StepStone, Lachy Groom, and Glade Brook, are not selling through the offer.
Regulatory Disclosure And India Shift
Zepto disclosed that founders Aadit Palicha and Kaivalya Vohra received summonses from India’s Enforcement Directorate in April. The agency sought information on foreign investments, shareholding structure, and other matters under foreign-exchange laws.
The founders later appeared before the agency and provided the requested information and documents. Zepto said it has not received further communication since then, but it could not rule out future inquiries or penalties.
The proposed listing follows Zepto’s move to shift its legal home from Singapore to India last year. The company was valued at $7 billion in its last funding round in October.
Featured image credits: Wikimedia
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