How IPO-Bound Zepto Stacks Up Against Quick Commerce Rivals Blinkit And Instamart

As Zepto gears up for its proposed initial public offering (IPO), fresh analysis by DAM Capital suggests the quick commerce firm has built a strong position in order volumes and store productivity, although profitability and funding remain key challenges.

The brokerage's assessment of Zepto's draft red herring prospectus (DRHP) comes as rival Blinkit, according to its latest quarterly results, continues to consolidate its leadership in scale and earnings.

Zepto has adopted an order-maximisation strategy, enabling it to outperform peers on daily order volumes per store, DAM Capital said in its report.

According to the brokerage, Zepto handled around 2,140 orders per day per store in the fourth quarter of FY26, compared with 1,425 for Blinkit and 1,093 for Swiggy Instamart.

The higher throughput, however, has been supported by a lower net order value (NOV) and a more aggressive free-delivery threshold than competitors, the brokerage said.

The analysis noted that less than 10% of Zepto's orders attract a delivery fee above ₹199, whereas Blinkit largely operates in the higher free-delivery threshold bucket.

The key monitorable for investors would be whether Zepto can increase order volume per store to about 3,000 while simultaneously raising its free-delivery threshold to ₹199 — a balance that may prove difficult as higher basket sizes could come at the expense of order volumes, the report said.

Blinkit Ahead In Profitability And Scale

While Zepto has focused on driving volumes, DAM Capital said Blinkit and Instamart have prioritised higher contribution per order through stronger NOV, describing that approach as a more sustainable business model.

The brokerage said that Zepto may need roughly 3,000 daily orders per store to reach adjusted EBITDA break-even, around 50% above its current throughput.

Blinkit's latest shareholder letter indicated that the company remains well ahead on several operating metrics. Eternal, Blinkit's parent, said the platform processed 916.6 million orders during FY26, compared with 640.2 million for Zepto and 412.2 million for Instamart.

Blinkit also generated revenue of ₹37,779 crore, exceeding Zepto's ₹22,624 crore, while operating 2,243 dark stores — nearly double of Zepto's 1,139-store network.

The profitability gap has also widened. Blinkit reported an adjusted EBITDA profit of ₹37 crore in the March quarter and improved that figure to ₹102 crore in Q1FY27, with management saying its strategy remains centred on expanding assortment, entering new geographies and strengthening supply chain infrastructure rather than competing mainly on price.

By comparison, Zepto reported an adjusted EBITDA loss of ₹1,247.5 crore in Q4FY26, while Instamart posted a loss of ₹1,009 crore, according to the shareholder letter.

IPO Is 'Time-Critical'

In terms of expansion, Zepto ended FY26 with 1,139 dark stores across 66 cities after adding a net 110 stores during the year, significantly lower than the 692 stores added in FY25, DAM Capital analysis said.

Blinkit, meanwhile, accelerated expansion by adding 942 stores to finish the year with 2,243 locations, while Instamart added 122 stores to reach 1,143 outlets.

Zepto plans to add around 750 stores over the next two years, funded largely through IPO proceeds.

The brokerage described the planned ₹8,000 crore IPO as "time-critical", estimating that, assuming no major store additions, Zepto has cash runway for only about three to three-and-a-half quarters based on its current burn rate.

Unlike Blinkit and Swiggy, which can draw cash flows from their food delivery businesses, Zepto remains a pure-play quick commerce company and therefore depends on external funding to finance expansion and remain competitive, DAM Capital said.