Zepto Receives Approval from Securities and Exchange Board of India for Confidential IPO Filing

Zepto Ltd Clears Path for India's First Pureplay Quick Commerce Listing

On Friday, Zepto Ltd, led by Aadit Palicha, received approval from the Securities and Exchange Board of India (Sebi) for its confidential initial public offering (IPO) papers. This development sets the stage for the country's first pureplay quick commerce listing.

According to a notification from Sebi, the company received observations from the regulator on 8 May, effectively green-lighting the IPO process. Zepto had filed its IPO papers under the confidential route in December 2025, keeping its business details and operational insights under wraps.

The company aims to file updated draft papers with Sebi in another six to eight weeks, as per two people aware of the matter who spoke to Mint. An updated prospectus, once filed, will be a public disclosure of the share sale details to investors. It will include financial metrics, risk factors, and operational data.

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Zepto's IPO Timeline and Expectations

Domestic institutional investors often provide baseline stability for large-scale public offerings in the Indian market, absorbing significant portions of the qualified institutional buyer (QIB) quota. Zepto plans to formally tap global investors only after the updated offer document is filed and the regulatory review process advances.

Valuation and Market Dynamics

Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO

Zepto was valued at $7 billion in October 2025 during its $450 million private capital raise led by the California Public Employees’ Retirement System. The company's current captable includes major players like General Catalyst, Nexus Venture Partners, Lightspeed Venture Partners, Avenir Growth Capital, and Motilal Oswal Financial Services. While officials close to Zepto maintained that the company is likely to eye a $7-8 billion valuation for the offer, the Mint report said a bearish sentiment in the country's capital market could impact the valuation.

In 2026, two private equity-backed companies went ahead with their IPOs at valuations lower than their last fundraises, as incoming institutional investors squeezed out private-market valuations. Fractal Analytics Ltd launched its offer at a 24% markdown from its previous fundraising in July 2025, where it was valued at $2.44 billion. Aye Finance Ltd, too, launched its IPO at around a $350 million valuation, slightly lower than the company's Series G round in the private market a year ago.

Zepto's Financial Performance

Founded by Palicha and Kaivalya Vohra, Zepto has raised large rounds of funding as it spent aggressively to build market share against Eternal-owned Blinkit and Swiggy's Instamart. In fiscal year 2025, Zepto's revenue jumped 129% year-on-year to ₹9,669 crore, but net loss widened nearly three times to ₹3,367 crore. The financials for FY26 are not publicly available yet.