Quick Commerce Leader Zepto Aims for $800 Million-$1 Billion IPO, Projects $5.5 Billion in Gross Sales for FY26

Quick commerce startup Zepto is considering increasing the size of its initial public offering (IPO) to $800 million-$1 billion, which includes secondary shares. Zepto's CEO, Aadit Palicha, has been discussing the company's public offering plans with top mutual funds. The company is projecting $5.5 billion in gross sales for the final quarter of FY26, while also achieving positive EBITDA, excluding ESOPs. This sales projection is nearly equivalent to the entire quick commerce industry's annual gross sales in the previous calendar year. Zepto initially planned to raise $450 million in primary capital in mid-2024 but now expects to raise over $800 million, with a portion of shares to be sold through an Offer for Sale (OFS). The company is also looking to have at least $300–400 million worth of shares sold in OFS along with an increase in the primary fundraise.

Zepto's Growth and Operations

Zepto has surpassed 900 dark stores, exceeding its previous target of 700 by March, and now aims to expand to around 1,000 stores. The company’s daily order volume is between 1.1 and 1.3 million, and its gross sales from non-grocery segments like electronics, apparel, and general merchandise have increased to Rs 200 crore per month. Zepto is also focusing on increasing domestic shareholding and aims for at least 40% domestic ownership before the IPO. To achieve this, Zepto is merging its Singapore parent unit with an Indian entity. The company has obtained approval from the National Company Law Tribunal (NCLT) for this merger. Zepto has also established a new entity, Zepto Marketplace Private Limited, to facilitate a shift from a B2B2C structure to a marketplace model similar to competitors. Zepto operates under a B2B model where its parent company procures goods and sells them to licensee companies, who then sell to customers and earn revenue by charging a fee to these companies for the use of its brand and platform.