Zepto Prepares to File $500Mn India IPO Draft, Targeting $7 Billion Valuation

Quick-commerce start-up Zepto is preparing to file draft papers for an initial public offering in Mumbai that could raise about $450–$500 million, Bloomberg reported. If completed, the listing would be among the largest consumer-internet IPOs in India’s near-term pipeline.

The company is said to be working with a group of investment banks that includes Axis Bank, Motilal Oswal, and the Indian units of Morgan Stanley, Goldman Sachs and HSBC to submit a confidential draft prospectus.

The proposed IPO follows a sizeable pre-IPO funding round earlier this year that raised roughly $450 million and valued Zepto at around $7 billion. The public offering is expected to bring in fresh capital to fund faster geographic expansion, increase warehouse density and strengthen last-mile logistics, as the company looks to sharpen competition with rivals such as Swiggy, BigBasket and Amazon’s India business.

What Happens Next?

According to the report, Zepto could file its draft red herring prospectus through SEBI’s confidential route as early as this month, although the timeline remains subject to final approvals from the board and advisers. If it goes ahead, the listing would come at a crucial point for India’s quick-commerce sector, which has attracted significant capital but continues to face margin pressure due to dense fulfilment networks and rising unit economics.

Investors have poured billions of dollars into ultra-fast delivery models in India, and Zepto’s IPO would reflect a bet that scale and improved unit economics can translate into sustainable returns. The fresh capital is expected to be used for expanding warehouses, strengthening technology and boosting customer acquisition, areas where rivals are also investing heavily, while the public listing would offer an exit route for late-stage investors. Analysts caution that investor interest will depend on a clear path to profitability and transparent metrics around fulfilment density and customer retention.

Stakes for Founders

A successful listing would validate Zepto’s rapid expansion strategy and its earlier fundraising at a multibillion-dollar valuation. Conversely, a subdued market reception could force a reassessment of valuations and growth expectations for other quick-commerce players that are either raising capital or considering public listings.

With the 2026 IPO calendar already shaping up to be crowded with large consumer and technology companies, Zepto’s pricing and timing are expected to be closely scrutinised by both domestic and global investors.