Zepto’s IPO Update

Zepto has recently submitted an updated draft red herring prospectus (UDRHP-I) to the Securities and Exchange Board of India, focusing on its upcoming initial public offering. This development follows the approval from SEBI for the company’s listing on stock exchanges, granted a month prior.

IPO Details

The initial public offering includes a new issue of equity shares valued at up to Rs 8,010 crore, alongside an offer for sale (OFS) of up to 113.47 million shares by current investors. The OFS features stake sales from several prominent investors, such as Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto LLC, Kaiser Foundation Hospitals, and the Kaiser Permanente Group Trust.

Regulatory Framework

Zepto indicated that the IPO is being executed under SEBI’s Regulation 6(2), a provision permitting companies that do not fulfill the typical profitability criteria to enter the public market. Additionally, the company is considering a pre-IPO placement of up to Rs 1,602 crore prior to submitting the red herring prospectus. Should this placement occur, the funds raised will reduce the size of the fresh issue.

Company Background

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto operates a quick commerce platform specialising in the delivery of groceries and everyday essentials. Initially registered as Kiranakart Technologies Private Limited, it was renamed Zepto Private Limited in April 2025, transitioning to a public entity by December 2025.

Management of the Offering

The book-running lead managers for this issue include Axis Capital, Morgan Stanley, Goldman Sachs, Motilal Oswal Investment Advisors, HSBC Securities and Capital Markets (India), JM Financial, and IIFL Capital Services, with KFin Technologies serving as the registrar.

Financial Performance

During the fiscal year ending March 2026, Zepto achieved double the year-on-year growth in revenue, reaching Rs 22,623 crore. However, the company’s losses also increased by 25%, amounting to Rs 5,905 crore during the same period.