IPO-Bound Zepto Doubles Revenue in FY26 But Losses Reach ₹5,905 Cr

Quick-commerce major Zepto reported a net loss of ₹5,905 crore in fiscal year (FY) 2026, up from ₹4,695 crore in FY24, even as the operating revenue doubled to ₹22,623 crore from ₹11,109.9 crore in the preceding fiscal year, according to its updated Draft Red Herring Prospectus (UDRHP).

Total expenditure rose sharply to 79% year-on-year (YoY) to ₹29,026 crore from ₹16,241.1 crore in FY24. The delivery and handling costs of the rapid delivery giant also doubled to ₹3,046.3 crore, employee benefits rose to ₹1,784.7 crore, a 44% increase, while warehousing costs jumped 56% to ₹2,150 crore.

The company's adjusted EBITDA loss rose by 11.5% to ₹5,041.5 crore from ₹4,521.7 crore in fiscal year 2025. However, its per-order cost losses have been reduced to ₹78.75 from ₹136.15 in FY25, signalling improving unit economics, as per the Inc24 report.

Advertising a Key Revenue Driver

Advertising revenue surged over 33-fold in two years, from ₹49 crore in FY24 to ₹651 crore in FY25 and ₹1,636 crore in FY26, growing at a pace that significantly outstripped overall business expansion, reported Moneycontrol.

The segment now constitutes 7.8% of Zepto's Net Receivables Value, up from 1.1% in FY24.

In Q4 FY26 alone, advertising revenue stood at ₹543 crore, up 83% year-on-year and 32% sequentially.

The quarter's ad revenue accounted for roughly one-third of the full-year total. Zepto attributed the growth to its in-house advertising tech stack and 2,468 brand partners, including brands like AU Small Finance Bank and CRED that do not sell directly on the platform.

IPO Plans

Zepto's proposed public issue comprises a fresh issue of shares worth ₹8,010 crore and an offer-for-sale (OFS) of nearly 11.35 crore shares by existing shareholders. According to media reports, Zepto is now looking to raise more than $1 billion, or over ₹10,000 crore, through the IPO.

The OFS is entirely investor-led, with founders Aadit Palicha and Kaivalya Vohra not selling any shares. Together with their families and family offices, the promoter group owns about 19.6% of the company.

Among the selling shareholders, Nexus Venture entities account for the largest portion of the OFS, planning to offload a combined 8.78 crore shares. Other investors participating in the sale include Razor Ventures Zepto, Contrary ZEP Holdings, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust.