Indian quick-commerce startup Zepto has officially filed for an initial public offering, providing investors with their first detailed look at the company’s financial performance, growth strategy, and future plans.

The IPO marks a major milestone for one of India’s fastest-growing technology companies and one of Y Combinator’s most successful international investments.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly become a leading player in India’s highly competitive quick-commerce industry, competing against Blinkit, Instamart, Amazon, and Flipkart.

Revenue Growth Remains Exceptional

Zepto’s filing revealed substantial growth across its business.

Operating revenue increased 104% year-over-year to ₹115.5 billion, equivalent to roughly $2.4 billion. Meanwhile, advertising revenue surged 151% to ₹16.4 billion, significantly outpacing overall company growth.

The strong performance of the advertising business reflects a strategy increasingly adopted by major e-commerce platforms. By selling product visibility and promotional placements to merchants, companies can generate higher-margin revenue streams beyond traditional product sales and delivery services.

Advertising is becoming an increasingly important component of Zepto’s business model and could play a significant role in future profitability efforts.

Customer Growth Continues to Accelerate

Zepto processed more than 640 million orders during fiscal 2026, nearly doubling from the previous year.

Annual transacting users climbed to nearly 48 million as the company expanded its store network to 1,139 locations across India.

Notably, order volumes continued increasing even as the company expanded its physical footprint, suggesting demand is scaling alongside network growth rather than being diluted by expansion.

This combination of customer growth and increasing order density remains one of the strongest indicators of Zepto’s market position.

Losses Continue to Widen

Despite impressive revenue gains, profitability remains a significant challenge.

Zepto reported a net loss of ₹59.1 billion, or approximately $617 million, during fiscal 2026. That compares with a loss of roughly $492 million in the prior year.

The growing losses highlight the ongoing costs associated with aggressive expansion, customer acquisition, logistics infrastructure, and competition within India’s quick-commerce market.

In its filing, Zepto acknowledged that it may continue generating losses and may not maintain its historical growth rates as the business matures.

IPO Structure and Fundraising Plans

The company plans to raise up to ₹80.1 billion, approximately $837 million, through a fresh share issuance.

The offering will also include the sale of up to 113.5 million shares by existing investors, including Nexus Venture Partners, Contrary, and Razor Ventures.

Additionally, Zepto may pursue a pre-IPO fundraising round worth up to ₹16 billion, or roughly $167 million, before completing its market debut.

Several major investors, including Y Combinator-affiliated funds, Lightspeed, StepStone, Lachy Groom, and Glade Brook, have chosen not to sell shares during the IPO process, signaling continued confidence in the company’s long-term potential.

Valuation Remains a Key Question

One of the biggest uncertainties surrounding Zepto’s public debut is valuation.

The company was last valued at approximately $7 billion during a funding round completed in October.

However, reports indicate that some institutional investors reviewing the IPO have suggested valuations below that level. This creates uncertainty regarding how public markets will ultimately value the business compared to private investors.

The IPO may become a significant test of investor appetite for high-growth, loss-making technology companies in India.

Regulatory Disclosure Draws Attention

The filing also revealed that founders Aadit Palicha and Kaivalya Vohra received summonses from India’s Enforcement Directorate in April.

Authorities requested information regarding foreign investments, company ownership structures, and compliance with foreign-exchange regulations.

According to Zepto, both founders provided the requested information and have not received further communication from regulators since then. However, the company acknowledged that future inquiries or investigations cannot be entirely ruled out.

Strategic Shift Back to India

Zepto’s IPO filing follows its decision to relocate its corporate domicile from Singapore to India last year.

The move aligns with a growing trend among Indian startups seeking domestic listings as local capital markets become increasingly attractive for technology companies.

The relocation also positions Zepto more directly within India’s regulatory and investment ecosystem as it prepares for life as a publicly traded company.

Outlook

Zepto’s IPO filing showcases a company delivering remarkable growth while still facing the familiar challenge of converting scale into profitability. Strong customer expansion, rapidly growing advertising revenue, and increasing market penetration demonstrate the strength of its business model.

However, widening losses and uncertainty around valuation mean investors will be closely watching whether Zepto can eventually translate its impressive growth into sustainable earnings. The upcoming IPO is likely to serve as an important benchmark for India’s broader technology and startup ecosystem.