The company has filed an updated draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), bringing it one step closer to launching its much-awaited initial public offering (IPO). The move comes at a time when investor interest in India’s fast-growing quick-commerce sector remains strong, with companies competing aggressively to deliver groceries and daily essentials within minutes.
According to the updated filing, Zepto’s will consist of a fresh issue of shares worth Rs 8,010 crore and an offer-for-sale (OFS) of 113 million shares by existing investors.
The company had initially submitted its IPO documents through SEBI’s confidential pre-filing route in December 2025. Reports suggest it received regulatory approval earlier this year.
Zepto plans to list its shares on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The OFS portion will allow some early investors to partially sell their holdings. These include Nexus Venture Partners, Contrary Capital, Kaiser Permanente and Razor Capital.
The company intends to use the money raised through the fresh issue to strengthen its business and expand its operations across India.
A significant portion of the funds will go towards opening more dark stores in existing and new markets. Dark stores are small fulfilment centres that help quick-commerce firms deliver orders within a short time.
The proceeds will also be used for lease-related expenses, investments in technology and cloud infrastructure, and marketing activities aimed at attracting more customers.
The planned spending reflects Zepto’s strategy of scaling up operations while improving its delivery network and customer experience.
The IPO will be launched through the book-building process as per Sebi regulations.
As outlined in the filing, at least 75% of the net offer will be reserved for Qualified Institutional Buyers (QIBs), while up to 15% will be allocated to Non-Institutional Investors (NIIs). Retail investors will get up to 10% of the net offer.
The company has also set aside a separate reservation portion for eligible employees.
While Zepto’s growth story is likely to attract significant attention, investors may want to look beyond the headline numbers before making an investment decision.
One of the key factors will be the company’s financial performance and its path towards profitability. Quick-commerce businesses have expanded rapidly in recent years, but they also require heavy spending on warehouses, delivery operations, discounts and customer acquisition.
Investors will also closely watch revenue growth, order volumes and how efficiently the company manages costs as competition in the sector intensifies. The quick-commerce market has become increasingly crowded, with several players investing heavily to gain market share.
Another important aspect will be valuation. Once pricing details are announced, investors will compare Zepto’s valuation with its growth prospects and future earnings potential.
The use of IPO proceeds will also remain under focus. The success of the company’s investments in dark stores, technology infrastructure and expansion plans could play a major role in determining its long-term growth.