Quick commerce major Zepto has received SEBI's approval for its proposed IPO. The Bengaluru-based startup is now expected to file its updated DRHP in the next six to eight weeks.
According to the latest update on the regulator's website, it issued an observation letter to the quick commerce startup earlier today. In SEBI's parlance, the issuance of the observation letter is a go-ahead to proceed with the IPO.
The IPO size is expected to be around $1 Bn (about ₹9,400 Cr), sources told Inc42. The proposed public issue is expected to largely comprise a primary capital raise, though the final issue size and pricing are yet to be finalised.
In December last year, the startup receivedthe approval of its shareholders to raise up to ₹11,000 Cr through a fresh issue of shares via its public offering.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto is among the leading players in India's rapidly expanding quick commerce market. The startup competes with Blinkit, Swiggy Instamart, and newer entrants such as Amazon Now and Flipkart Minutes.
The development comes amid intensifying competition in the quick commerce segment, with players trying to retain customers as users increasingly switch platforms based on delivery speed, pricing and product availability.
The sector is witnessing aggressive expansion, with companies investing heavily to capture a larger share. The country's quick commerce market is projected to reach a size of nearly $40 Bn by 2030.
Zepto's listing will position it among publicly traded quick commerce players such as Swiggy and Eternal-owned Blinkit.
Most recently, Amazon announced plans to expand its quick commerce service Amazon Now to 100 cities across India as part of a ₹2,800 Cr investment aimed at strengthening its presence in the segment.
Earlier in March, Eternal infused ₹450 Cr into Blinkit through a rights issue, marking its first capital infusion into the quick commerce arm in 2026.
Zepto last raised $450 Mn (around ₹3,955 Cr) at a $7 Bn valuation in October 2025 in a mix of primary and secondary transactions led by California Public Employees' Retirement System (CalPERS). Overall, the startup has raised over $2.45 Bn to date from investors including Epiq Capital, StepStone, Contrary, Dragon Fund, General Catalyst, DST Global, Lightspeed Venture Partners, Breyer Capital and Y Combinator Continuity Fund, among others.
In February, Zepto shut its loyalty and subscription programme, Zepto Daily, as part of its efforts to refine user experience and offerings.
On the financial front, Zepto's total income, including other income, surged 129% to ₹9,668.8 Cr in FY25 from ₹4,223.9 Cr in FY24. Its net loss widened 177% to ₹3,367.3 Cr from ₹1,214.7 Cr in the previous year.