Most of us have been there it is 9 PM, you need eggs and bread, and the nearest grocery store feels like a mission. Zepto built an entire business around solving exactly that problem, and they did it faster than anyone expected.

Founded in December 2020 by Aadit Palicha and Kaivalya Vohra, Zepto is a quick commerce platform that delivers groceries, fresh produce, electronics, personal care products, and daily essentials fast. The company operates 1,139 dark stores across 66 cities in India. These are small fulfilment centres placed inside residential areas, not retail shops. When you place an order, it gets picked, packed, and dispatched from the nearest dark store.

As of March 2026, Zepto was processing 2.33 million orders every single day and serving 47.97 million customers annually. The product catalogue has 46,623 SKUs from fruits and vegetables to headphones and cosmetics. Total sales reached ₹24,815 crore in FY26.

The company makes money through product commissions, delivery fees, advertising revenue from FMCG brands, and procurement and distribution services. The advertising business is worth watching brands are paying Zepto to show up when customers are actively buying, which is high-intent and high-margin compared to traditional digital ads.

5,212 permanent employees and 48,011 operating staff run this entire machine. That's a serious operation.

Financial Snapshot

Revenue growth here is genuinely hard to ignore. Total income went from ₹4,544 crore in FY24 to ₹11,602 crore in FY25 to ₹23,128 crore in FY26. That's revenue doubling two years in a row. Very few companies anywhere in India have compounded at this pace.

But the losses are just as hard to ignore. Net loss was ₹1,214 crore in FY24. It jumped to ₹4,699 crore in FY25. Then ₹5,905 crore in FY26. EBITDA was negative ₹4,746 crore in FY26. So while revenue doubled, losses also grew the business is in heavy expansion mode and profitability is not here yet.

Net worth has dropped from ₹6,147 crore in FY25 to ₹3,559 crore in FY26 because losses keep eating into equity. Total assets are ₹13,510 crore. The company needs fresh capital to keep growing which is exactly what this IPO is for.

What I'd watch closely is the trajectory. FY24 loss was ₹1,214 crore on ₹4,544 crore revenue loss-to-revenue ratio of 26%. FY26 loss is ₹5,905 crore on ₹23,128 crore revenue ratio of 25.5%. Losses are growing in absolute terms but staying roughly flat as a percentage of revenue. That's not great but it's also not deteriorating. The question is when does this ratio start falling meaningfully.

Strengths

• Revenue doubled two consecutive years — ₹4,544 crore to ₹11,602 crore to ₹23,128 crore; this kind of consistent top-line growth at scale is rare and tells you the demand is real
• 1,139 dark stores across 66 cities processing 2.33 million daily orders — this physical infrastructure took years to build; it's the real moat here, not just the app
• 47.97 million annual transacting users — nearly 5 crore customers actively buying means the retention and habit formation is working; these aren't one-time app downloads
• SEBI approved IPO with fresh issue entirely funding business growth — all IPO proceeds go into expansion and technology, no promoter exit money involved in the fresh issue portion.

Risks

• Losses grew from ₹1,214 crore in FY24 to ₹5,905 crore in FY26 — three years in and losses are still widening in absolute terms; there's no clear date on when this business turns profitable
• EBITDA negative ₹4,746 crore in FY26 — the business isn't covering its operating costs yet; every order processed is still subsidised in some way
• Net worth falling every year — from ₹6,147 crore to ₹3,559 crore in one year; if losses continue at this pace, the company will need more capital beyond this IPO
• Promoter holding at just 19.56% — founders own less than a fifth of their own company; heavy dilution from multiple funding rounds means the founders' skin in the game is limited

Should You Apply?

IPO dates not announced yet. Price band not declared. Expected sometime in H2 2026 after SEBI approval received in May 2026.

Conservative investors — skip this one entirely. Loss-making business, no profitability timeline, and a valuation that will be steep. This is not designed for someone who wants safe, predictable returns.

Moderate investors — wait for the price band before deciding anything. Once the RHP is out, check what valuation they're asking and whether the fresh issue size makes sense for the expansion plan. One lot might make sense if pricing is reasonable but don't go in blind.

Aggressive investors — this is the most talked-about IPO of 2026 for a reason. The brand is real, the growth is real, and quick commerce is still early in India. If you're comfortable holding for 3-4 years while the company works toward profitability, this could be interesting. Just be ready for listing volatility — a loss-making company at a high valuation can swing hard either way on listing day.

Honest take: Zepto is building something genuinely big. The numbers prove the demand is there. But you're being asked to pay a premium today for profits that may arrive 2-3 years from now. That's a bet, not an investment. Go in with eyes open.

IPO Objects of the Issue

Contact Details

Zepto Ltd. Hiranandani Lighthall, A Wing, 6th Floor, Saki Vihar Road, Andheri East, Mumbai, Maharashtra – 400072

📞 +91 96062 42106 📧 cosec@zepto.com 🌐 Visit Website

IPO Registrar

KFin Technologies Ltd. 📞 040-6716 2222 / 040-7961 1000 📧 einward.ris@kfintech.com 🌐 Visit Website

This content is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making any investment decisions.