In a major development for India's startup ecosystem, quick commerce unicorn Zepto has taken a decisive step towards going public. The company has confidentially submitted preliminary documents to the Securities and Exchange Board of India (Sebi) to raise a massive ₹11,000 crore through an initial public offering (IPO), according to sources familiar with the matter. The move, reported on Saturday, December 27, sets the stage for a potential stock market debut next year, which could position Zepto as one of the youngest Indian startups to list on domestic exchanges.
Confidential Pre-Filing: A Strategic Move
Zepto has opted for the confidential pre-filing route for its draft red herring prospectus (DRHP). This mechanism allows a company to privately engage with the market regulator Sebi and receive initial feedback on its draft documents before making them public. This approach is increasingly popular among firms seeking greater flexibility during their IPO preparations, enabling them to fine-tune their offer based on regulatory input and market conditions without immediate public scrutiny.
If successful, Zepto will join its publicly traded rivals in the food and grocery delivery space. Zomato, which also owns quick commerce platform Blinkit, listed in 2021, while Swiggy, the operator of Instamart, made its stock market debut in November 2024.
Zepto's Meteoric Rise and Financials
The push for a public listing follows robust backing from private investors. Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto revolutionized urban grocery shopping with its 10-minute delivery model. The company achieved the coveted unicorn status (valuation over $1 billion) in August 2023 after a $200 million Series E funding round that valued it at $1.4 billion.
Since its inception, Zepto has raised a total of $1.8 billion (approximately ₹16,000 crore) from marquee global investors. Its most recent funding round in October 2025 was led by the California Public Employees' Retirement System (CalPERS), which infused $450 million (about ₹3,757.5 crore) at a valuation of $7 billion.
The company's operational scale is significant. As of September 2025, Zepto operated a network of over 900 dark stores across major Indian cities. It reported gross sales of $3 billion (around ₹26,000 crore) for the period, although it also recorded a cash burn of ₹1,000-1,100 crore, highlighting the capital-intensive nature of the quick commerce business.
What This IPO Means for the Market
Zepto's proposed ₹11,000 crore IPO is more than just a fundraising exercise; it signals a pivotal moment for India's quick commerce sector. A successful listing would validate the business model's potential in urban Indian markets and could pave the way for other late-stage startups to consider public markets. The use of the confidential filing route underscores a maturing approach among Indian tech founders, who are leveraging sophisticated financial strategies to navigate their path to the public markets.
The coming months will be crucial as Zepto incorporates Sebi's feedback and prepares for its public offer, potentially marking a new chapter for India's high-growth startup landscape.
