Zepto's IPO Filing Reveals Fast Growth, Bigger Losses, and Uncertain Valuation

Zepto, one of India's fastest-growing startups, has filed for an initial public offering (IPO) that could value the company at around $1 billion, despite continuing losses.

Zepto's advertising revenue rose by 151% year-over-year to ₹16.4 billion (about $171 million) in fiscal 2026, significantly outpacing its operating revenue growth of 104% to ₹115.5 billion (around $2.4 billion). This shift towards advertising revenue points to a broader strategy, similar to Amazon's marketplace model, where the company sells visibility to merchants competing on its platform.

Intense Competition in Quick-Commerce Market

Zepto competes with Zomato-owned Blinkit and Swiggy's Instamart in India's fiercely contested quick-commerce market. Amazon and Walmart-backed Flipkart have also intensified their efforts in the segment in recent months. Despite the intense competition, Zepto has continued to add customers and orders at a rapid clip, processing more than 640 million orders in fiscal 2026, nearly double the previous year.

Loss-Making but Rapid Expansion

Zepto remains loss-making, reporting a net loss of ₹59.1 billion (about $617.36 million) in fiscal 2026, compared with ₹47.0 billion (around $492.45 million) a year earlier. The startup acknowledged in its filing that it may continue to incur losses and may not be able to sustain its historical growth rates.

IPO Plans and Valuation Uncertainty

Zepto plans to raise up to ₹80.1 billion (about $837.41 million) through a fresh issue of shares. The IPO will also include an offer-for-sale of up to 113.5 million shares by existing investors. The startup's valuation remains uncertain, with some mutual funds and family offices indicating valuations well below its last private round.

Regulatory Scrutiny

Zepto's founders received summonses from India's anti-money laundering agency, the Enforcement Directorate, in April, seeking information related to foreign investments, the company's shareholding structure, and other matters under the country's foreign-exchange laws. The founders subsequently appeared before the agency and provided the requested information and documents.

Conclusion

Zepto's IPO filing provides a rare look at how the company plans to sustain its breakneck growth after listing. With intense competition in the quick-commerce market and the potential for continued losses, Zepto's public-market valuation remains uncertain. The startup's plans to raise funds through an IPO and its regulatory scrutiny will be closely watched by investors and industry observers alike.