Zepto Looking To Increase IPO Size To $800 Mn – $1 Bn: Report

Quick commerce platform Zepto is reportedly looking to increase its initial public offering (IPO) size to $800 Mn–$1 Bn, including secondaries.

According to an ET report, its CEO, Aadit Palicha, recently discussed the company’s IPO plans with top mutual funds. Sources told ET that Zepto is projecting gross sales of $5.5 Bn in the final quarter of FY26 while achieving positive EBITDA (excluding ESOPs).

This projection is nearly equivalent to the annual gross sales of the entire quick commerce industry in the previous calendar year, according to several brokerages.

Inc42 has reached out to the company, and the story will be updated based on the responses. 

Zepto initiated its IPO plans in mid-2024, initially targeting a $450 Mn primary capital raise. According to sources, the offering size is now expected to exceed $800 Mn, including $300–400 Mn in shares sold via an offer for sale (OFS) and an increased primary fundraise through new share issuance.

Yesterday (January 21), Palicha held a town hall to update employees on the company’s financial performance and its plans for an IPO this year, according to ET.

The Bengaluru-based startup has also surpassed 900 dark stores, exceeding its earlier target of 700 by March. The company is now aiming to expand its network to approximately 1,000 stores.

Founded in 2021 by Palicha and Kaivalya Vohra, Zepto currently operates under a B2B model. Its parent, Kiranakart Technologies, procures goods directly from brands and sells them exclusively to its licensee companies, including the likes of Geddit Convenience, Drogheria Sellers and Commodum Groceries.

The quick commerce firm earns revenue by levying a fee on these companies for using its brand and platform.

The development comes at a time when the company has already obtained the necessary permissions to relocate its base from Singapore to India ahead of the public listing.

As part of its IPO plans, it has also set up a new entity, Zepto Marketplace Private Limited, as part of its restructuring plans.

Registered in October last year, this new entity is expected to facilitate a shift from Zepto’s current B2B2C structure to a marketplace model, similar to the strategies employed by competitors like Zomato-owned Blinkit and Swiggy Instamart.

Meanwhile, the quick commerce giant grabbed headlines last year after raising a whopping $1.3 Bn in funding and outpacing Blinkit and Swiggy Instamart in terms of revenue.

Amid the rising competition in the quick commerce space, the Palicha-led company is also doubling down on its presence in India. While Zepto was operational in seven cities in 2023, this number rose to 35 last year and its dark store count doubled to 650 from 300 earlier.