Zepto Files Updated DRHP for ₹8,010 Cr Fresh Issue; Investors Eye Partial Exit

Zepto has taken a key step toward its stock market debut after filing an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The quick commerce firm plans to raise ₹8,010 crore through a fresh issue of equity shares, along with a large offer-for-sale (OFS) by early investors.

The IPO will mark a major milestone for India’s fast-growing quick commerce sector, with Zepto aiming to become the first dedicated player in the space to list on domestic exchanges. The offering also includes partial exits for several venture capital and institutional investors.

The filing highlights a sharp scale-up in operations over the past three fiscal years, alongside rising costs linked to aggressive expansion.

IPO Structure, Investors and Lead Managers

The IPO comprises a fresh issue of up to ₹8,010 crore and an OFS of over 11.34 crore equity shares by existing shareholders. Key investors participating in the OFS include Nexus Venture entities, Contrary Capital-linked entities, Razor-backed funds, and Kaiser-linked institutional investors.

Importantly, promoters and co-founders Aadit Palicha and Kaivalya Vohra, along with associated family trusts, will not sell any shares in the IPO. Nexus entities account for the largest portion of the secondary share sale, followed by other early backers.

The IPO is being managed by a consortium of book running lead managers, including Motilal Oswal Investment Advisors, Morgan Stanley India Company, Goldman Sachs (India) Securities, JM Financial, IIFL Capital Services, HSBC Securities and Capital Markets (India), and Axis Capital.

Revenue Jumps, Losses Widen as Costs Surge

Zepto’s financials show rapid expansion in scale. The company’s operating revenue rose to ₹22,623.6 crore in FY26, up from ₹11,109.9 crore in FY25 and ₹4,454.5 crore in FY24.

However, this growth came alongside widening losses. Net loss increased to ₹5,905.2 crore in FY26, compared with ₹4,699.7 crore in FY25 and ₹1,214.7 crore in FY24. The company attributed this to higher spending on logistics, procurement, and rapid network expansion.

Total expenses also surged to ₹29,026.7 crore in FY26, with procurement of traded goods forming the largest cost component, reflecting the capital-intensive nature of quick commerce operations.

IPO Proceeds Usage and Expansion Plans

A significant portion of the IPO proceeds will be directed toward expanding Zepto’s dark store network. The company has allocated funds for setting up nearly 1,900 new dark stores by FY30, along with substantial lease payments for existing infrastructure.

Investment in technology and cloud infrastructure is another key focus area, with over ₹1,300 crore earmarked to strengthen its platform, improve efficiency, and support scaling operations across millions of users.

Additional funds will be used for marketing through its marketplace arm, potential acquisitions, and general corporate purposes. The company said these investments are aimed at improving margins and sustaining long-term growth in a highly competitive market.

Zepto operates in India’s crowded quick commerce sector, competing with players such as Blinkit, Instamart, Amazon Now, Flipkart Minutes, BigBasket, and JioMart. With this IPO, the company is positioning itself as a pioneer among pure-play quick commerce firms in the listed space, even as it continues to post heavy losses in pursuit of scale.