Zepto Revives IPO Plans Amid Heavy Cash Burn: Here’s All We Know

Quick commerce firm Zepto has reportedly restarted preparations for an initial public offering (IPO) and plans to file its draft documents with market regulator Sebi soon. The plan, which had been put on hold earlier this year, has now been revived.

According to The Economic Times (ET), the Bengaluru-based company is likely to file its draft red herring prospectus within the next two to three weeks through the confidential route. Citing sources, the report said the Aadit Palicha-led firm plans to raise funds via a combination of fresh equity and an offer for sale (OFS) by early investors. Zepto is reportedly targeting a pre-listing raise of $450–500 million (₹4,000–4,440 crore).

However, ET noted that the fundraising size could change depending on Zepto’s cash burn at the time of listing.

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.

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

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.

Meanwhile, market leader Blinkit’s parent company, Eternal, raised $1 billion through a QIP last year and held over $2 billion in cash as of September. Blinkit commands more than 50% of India’s quick commerce market, with Zepto, Instamart, BigBasket, Flipkart Minutes, and Amazon Now sharing the rest.

Following the October 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.

After closing the $450 million round, Zepto scrapped handling fees and reduced delivery charges to boost order volumes. The company is now reportedly focused on driving order growth and user retention, clocking 1.6–1.7 million orders per day and aiming to double that figure annually, ET reported. It has also trimmed costs by laying off around 800–900 employees and keeping several roles vacant.