Quick commerce startup Zepto has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering, clearing the path for the company to file an updated draft red herring prospectus (UDRHP), according to people aware of the development.
The Mumbai-based company is looking to raise between $800 million and $1 billion (₹7,500 crore to ₹9,300 crore) through the public issue, sources said. The company had confidentially filed its draft papers earlier this year.
With the regulatory nod in place, Zepto is expected to accelerate preparations for listing, potentially making it one of the fastest new-age consumer internet firms to hit the public markets.
The Aadit Palicha-led company has already begun engaging institutional investors through pre-IPO roadshows. During investor discussions, Zepto pitched a roadmap to achieve full-year post-tax profitability by FY29 while sustaining sequential growth of 25-30 per cent every quarter, sources added.
Zepto did not immediately respond to queries.
The planned listing comes amid intensifying competition in India’s fast-growing quick commerce market, where Zepto competes with Blinkit, Swiggy Instamart, Amazon India’s Amazon Now, Flipkart Minutes and BigBasket, among others.
Zepto has sharply scaled up operations over the past year. The company, which was previously delivering around 1.5-1.7 million orders daily, is now fulfilling more than 2.5 million orders every day, according to sources.
Its IPO plans, however, come at a time of heightened volatility in equity markets due to the ongoing conflict in West Asia. Fintech major PhonePe has already put its listing plans on hold amid uncertain macroeconomic conditions.
Zepto’s financials reflect the rapid expansion underway in the sector. The company reported total sales, including other income, of ₹9,668.8 crore in FY25, up 129 per cent from ₹4,223.9 crore a year earlier. Net losses widened 177 per cent year-on-year to ₹3,367.3 crore as the company continued investing aggressively in expansion, dark stores and customer acquisition.