Quick commerce major Zepto has filed its updated draft red herring prospectus (UDRHP) with SEBI, weeks after getting the regulator’s go-ahead for its IPO.
The proposed public offering will comprise a fresh issue of shares worth ₹8,010 Cr. The company plans to use the proceeds from the fresh issue for the following purpose:
- Dark Store Expansion: While ₹1,629 Cr has been set aside for setting up 1,904 dark stores till FY30, ₹1,734.9 Cr has been reserved for the lease payments of dark stores. Zepto operated 1,139 dark stores as of March 31, 2026.
- Tech & Cloud Infrastructure: Operating a digital platform serving about 4.8 Cr annual transacting users, Zepto sees its in-house technology stack as a critical lever to unlock additional cost efficiencies, expand margins and enhance scalability. It will invest ₹1,324.8 Cr from the net proceeds to enhance its tech stack over the next three fiscal years.
- Zepto Marketplace Investment: The quick commerce major plans to invest ₹520 Cr for marketing and promotion initiatives for its platform via the subsidiary.
The remainder of the fresh proceeds will be used to undertake unidentified acquisitions for inorganic growth as well as general corporate purposes.
Meanwhile, its investors intend to offload up to 11.35 Cr shares via the IPO.
Nexus Venture Partners — via its two holding entities Nexus Ventures VI Holdings and Nexus Ventures VII Holdings — plans to offload the largest number of shares at 8.78 Cr. Meanwhile, Razor Capital is looking to sell 93.64 Lakh share and Contrary Capital is eyeing to offload 78.01 Lakh shares.
The company’s promoters — Aadit Palicha, Kaivalya Vohra, Lazarus Trust and The Vohra Trust — won’t participate in the OFS.
Zepto’s largest shareholder and promoter is Lazarus Trust, acting through its trustee and cofounder Aadit’s father Kavit Palicha, with a 9.03% stake in the company. The Vohra Trust, acting through Kaivalya’s father, holds a 7.48% equity stake.
Cofounders Aadit and Kaivalya hold 1.07% stake and 0.89% stake, respectively, in the company.
On the financial front, the company’s net loss widened 26% to ₹5,905.2 Cr in FY26 from ₹4,699.7 Cr in the previous fiscal year. Operating revenue more than doubled to ₹22,623.6 Cr during the year under review from ₹11,109.9 Cr in FY25.
The company said that it served over 6.4 Cr orders in the fiscal year, serving 17.56 Lakh orders per day on average. It claims a net receivables value (NRV) of ₹24,815.5 Cr for the fiscal.
Zepto competes with Eternal’s Blinkit, Swiggy’s Instamart, Amazon Now, Flipkart Minutes, BigBasket, and JioMart in the country’s rapidly growing quick commerce market. While Eternal and Swiggy are listed on the stock exchanges, Zepto is looking to become the first pure-play quick commerce player in India to make its debut on the bourses.
Zepto has raised a total funding of over $2.4 Bn to date from the likes of Lightspeed Venture Partners, Glade Brook Capital Partners, Motilal Oswal Wealth, Y Combinator, among others.
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