Zepto Becomes Public Entity Months Ahead of 2026 IPO

Quick commerce unicorn Zepto has reportedly received board approval to convert the private company into a public entity. The resolution “to approve the conversion from private limited company to public limited company” was cleared by shareholders on November 21, according to PTI reports.

Becoming a public company is the first step toward launching an initial public offering (IPO). Sources told PTI that Zepto is expected to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) later this month. The quick commerce unicorn is aiming to go to public by June 2026.

“We are growing 20-25% every quarter on order volume, and burn is going down…we’re able to show investors that in relative terms we’re able to deliver reasonable capital efficiency for 100% plus year on year growth,” said a Zepto spokesperson.

Earlier reports indicated that the quick commerce giant was preparing to submit its IPO documents to Sebi through the confidential pre-filing mechanism. The upcoming offering is expected to include a fresh issue worth $450-500 million, along with an offer for sale from early investors.

The four-year-old quick commerce player has appointed several investment banks for its upcoming public issue, including Morgan Stanley (as lead bookrunner), Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal. The IPO is expected to take place between July and September next year, with groundwork for filing already underway.

This comes less than a month after Zepto raised about $450 million in private capital in October, valuing the company at around $7 billion.

Following this fundraising, Zepto reportedly had roughly $900 million in net cash on its balance sheet, positioning it as “well-capitalised for the future,” according to founder and CEO Aadit Palicha.

However, reports have also highlighted the cash-intensive nature of Zepto’s business, where its operating expenses far exceed its cash flows. Competitors such as Swiggy and Eternal face similar challenges. Swiggy, which operates Instamart, is preparing for a $1.1 billion qualified institutional placement (QIP), its second public fundraising since its November 2024 IPO.

The firm has already spent over 80% of the $450 million raised then and expects to generate about $270 million from the sale of its stake in Rapido to Prosus and WestBridge Capital, pending approvals.