If that question makes you pause and scroll away without an answer, I would call you a "Wanderer." You are not confused because this is complicated. You are confused because nobody has walked you through what an IPO filing actually says, in plain words.
So, dear Wanderer, here at The Bazaar Guru, let's fix that. We'll use Zepto's own numbers, filed with regulators in June 2026, as the example.
In This Post:
What Is Zepto?
The IPO at a Glance
The Numbers: Growth and Losses
Why the Valuation Might Come Down
Risks Worth Knowing About
Common Mistakes to Avoid
FAQ
Key Takeaways
Go Deeper
Disclaimer
What Is Zepto?
Zepto delivers groceries and daily essentials to your door in minutes. It does this using "dark stores," small local warehouses that are not open to walk-in customers but exist purely to pack and send out orders fast.
Two Stanford dropouts, Aadit Palicha and Kaivalya Vohra, started the company in July 2021. Today Zepto competes with Zomato-owned Blinkit and Swiggy's Instamart, and it also faces newer competition from Amazon and Flipkart, both of which have launched their own quick-delivery services.
On June 8, 2026, Zepto filed an updated Draft Red Herring Prospectus, usually just called a DRHP. This is the official document a company must submit to the Securities and Exchange Board of India, or SEBI, before it can list on the stock exchange. A DRHP is where the real numbers finally become public, and it's what this whole post is based on.
The IPO at a Glance
Zepto's fresh issue, meaning new shares the company itself is creating and selling to raise money, is confirmed at ₹8,010 crore. Alongside this, existing investors plan to sell around 11.35 crore of their own shares in what's called an Offer for Sale, or OFS.
Here's the difference that actually matters to you. Money from the fresh issue goes into Zepto's business. Money from the OFS goes straight into the pockets of early investors who are partly cashing out. Market reports estimate the combined IPO size at roughly ₹11,000 to ₹12,000 crore, though the final number depends on the price band, which had not been announced as of mid-July 2026.
Swipe to see the full table →
| Detail | As Filed, June 2026 |
|---|---|
| Fresh issue | ₹8,010 crore |
| Offer for Sale | About 11.35 crore shares |
| Estimated total size | ₹11,000 to ₹12,000 crore (unconfirmed) |
| Registrar | Kfin Technologies |
| Expected listing | August 2026 (tentative, not confirmed) |
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The Numbers: Growth and Losses
Let's start with the good part. Zepto's revenue from operations more than doubled in one year, rising 103.63% to ₹22,623.58 crore in FY26 (the financial year ending March 31, 2026), up from ₹11,109.94 crore in FY25.
Orders crossed 64 crore (640 million) for the year, close to double the year before. The company now runs 1,139 dark stores across 66 cities and served 4.79 crore annual transacting users, meaning shoppers who placed at least one order in the year, up 25% year on year.
One line item grew even faster than the core business. Advertising revenue, money Zepto earns by charging brands to promote products inside the app, jumped roughly 2.5 times to ₹1,636 crore. This is the same playbook Amazon used: once enough shoppers show up, selling visibility to brands becomes a high-margin business on top of the main one.
Now the other side. Zepto's net loss widened to ₹5,905.19 crore in FY26, up 26% from ₹4,699.71 crore in FY25. A common tool like the P/E ratio, which compares a company's share price to its profit, simply doesn't apply here. There is no profit to compare it against yet.
There is a genuinely encouraging detail buried in the loss numbers, though. Zepto's cost per order has been falling steadily, and its negative free cash flow (a measure of how much more cash the company is spending than it earns) improved to ₹4,329.54 crore in FY26 from ₹5,332.48 crore the year before. Growth is still expensive, but it looks to be getting a little less expensive per order.
Why the Valuation Might Come Down
Zepto was valued at $7 billion in October 2025, when it raised $450 million in a funding round led by the California Public Employees' Retirement System, a large US pension fund. Several market reports, citing people close to the process, suggest mutual funds and family offices evaluating Zepto ahead of the IPO indicated they would value it well below that $7 billion mark, closer to the $5.6 to $6 billion range.
Worth knowing: this is not something Zepto has officially confirmed as a final number. It reflects investor sentiment reported in the run-up to the listing, and the real answer only arrives once the price band is announced.
Why would this happen at all? Public market investors like mutual funds tend to demand more proof of a path to profit than late-stage private investors do. It is a pattern seen before. The Byju's-Aakash saga is a well-known example of how fast a headline valuation can drift away from what buyers are actually willing to pay once real scrutiny begins.
One detail supports the idea that early backers still believe in the long-term story. Some of Zepto's biggest investors, including funds linked to Y Combinator, Lightspeed, StepStone, and Glade Brook, are reportedly not selling any shares in the OFS. They are choosing to hold rather than lock in a lower price now.
Risks Worth Knowing About
Quick commerce is a tough business. Margins are thin, competition from Blinkit, Instamart, and Flipkart is intense, and none of the major players are consistently profitable yet.
Zepto's filing also disclosed a regulatory matter. In April 2026, India's Enforcement Directorate, the agency that investigates violations of foreign exchange rules, sent summons to both founders asking for details on foreign investments and the company's shareholding structure. Both founders appeared before the agency and submitted the requested documents. Zepto said it has had no further communication since, but its filing notes that future inquiries or penalties cannot be ruled out.
Once Zepto lists, watching how institutions actually trade the stock, not just how they talk about it, will tell you more than any headline. Tracking FII and DII buying activity after listing is one practical way to see whether that early skepticism from mutual funds holds up or fades.
Common Mistakes to Avoid
- Assuming you love the app, so it must be a good stock. Using Zepto and owning Zepto shares are two completely different decisions.
- Mixing up the fresh issue with the OFS. A large OFS means early investors are partly exiting, not that fresh growth capital is flooding into the business.
- Chasing the grey market premium. Unofficial GMP numbers move daily, are not regulated, and are a poor predictor of long-term stock performance.
- Skipping the risk factors section. Details like the ED summons are disclosed for a reason, and deserve as much of your attention as the growth story.
FAQ
What is Zepto's expected IPO valuation?
Market reports suggest a listing valuation in the $5.6 to $6 billion range, below the $7 billion Zepto was valued at in October 2025. This is not officially confirmed and will only be finalised once the price band is announced.
When does the Zepto IPO open?
As of mid-July 2026, exact dates were not finalised. Several market trackers point to an opening in the first week of August 2026, with listing expected the following week, but investors should confirm through official SEBI and exchange announcements closer to the date.
Is Zepto profitable?
No. Zepto reported a net loss of ₹5,905.19 crore in FY26, wider than the ₹4,699.71 crore loss in FY25, even though revenue more than doubled over the same period.
What is Zepto's revenue?
Revenue from operations rose 103.63% year on year to ₹22,623.58 crore in FY26, up from ₹11,109.94 crore in FY25, according to its June 2026 regulatory filing.
Who are Zepto's main competitors?
Zepto's closest rivals are Zomato-owned Blinkit and Swiggy's Instamart, with growing competition from Amazon and Walmart-backed Flipkart in India's 10-minute delivery segment.
Should a beginner apply for the Zepto IPO?
That depends entirely on your own risk appetite. Zepto is a fast-growing but loss-making company in a highly competitive sector, which usually means more price swings after listing. Read the full risk section of the prospectus yourself, and never treat an IPO application as a guaranteed quick profit.
Key Takeaways
- Zepto's FY26 revenue more than doubled to ₹22,623.58 crore, but its net loss also widened to ₹5,905.19 crore.
- Its expected IPO valuation is estimated at $5.6 to $6 billion, below its last private valuation of $7 billion, though this isn't officially confirmed yet.
- The IPO combines an ₹8,010 crore fresh issue with an Offer for Sale by early investors, and some large backers are choosing not to sell.
- A regulatory matter involving the Enforcement Directorate was disclosed in the filing and remains worth watching.
- Treat this as a high-growth, high-risk, pre-profit bet, and read the actual filing rather than relying on GMP chatter.
Go Deeper
- How Haldiram's Became a $10 Billion Snack Empire
- What Does Promoter Holding Really Tell You About a Stock?
- What Is the PEG Ratio? A Simple Guide for Indian Investors
- What Is a Mutual Fund? Complete Guide for India
Disclaimer: This content is for educational purposes only and should not be considered investment advice. Markets carry risk, and past patterns do not guarantee future performance. Please consult a SEBI-registered investment advisor before making any investment decisions.