Zepto files updated DRHP, plans to raise ₹8,010 crore via fresh issue

Zepto has filed its updated draft papers with Sebi for a proposed ₹10,000 crore IPO, with the proceeds earmarked for expansion, technology investments and business growth

Quick commerce (qcom) platform Zepto has filed its draft papers with the Securities and Exchange Board of India (Sebi), a precursor to hitting the primary market. The company would be the first qcom-only firm to mark its D-Street debut in the next few months. Its IPO size is expected to be around ₹10,000 crore.

 

The proposed initial public offering (IPO) comprises a fresh issue of equity shares worth ₹8,010 crore and an offer for sale (OFS) of shares by existing investors, according to the updated draft red herring prospectus (UDRHP) filed late on Monday night. The OFS component includes up to 113,466,566 equity shares of face value ₹5 each.

 

The investors offloading shares include Nexus Ventures VI Holdings, Nexus Ventures VII Holdings, Contrary ZEP Holdings, Razor Ventures Zepto, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust. While Nexus Ventures VI Holdings and Nexus Ventures VII Holdings currently hold 8.57 per cent and 4.55 per cent stakes, respectively, Contrary ZEP Holdings holds 1.13 per cent and Razor Ventures Zepto holds a 1.14 per cent stake.

 

The company will use the fresh issue proceeds to bolster its growth and expansion plans. It plans to invest in the expansion of its dark store network through the setting up of new dark stores in existing and new geographies (₹1,628.9 crore), lease rentals for existing dark stores (₹1,734.9 crore), and technology and cloud infrastructure (₹1,324.7 crore).

 

The qcom firm is also looking to invest in its subsidiary, Zepto Marketplace Private Limited, for marketing and business promotion expenses to enhance brand awareness and visibility (₹520 crore).

 

Further, without mentioning the amount, it said it would fund inorganic growth through acquisitions and general corporate purposes.

 

The Bengaluru-headquartered company had filed its draft papers in December last year through the confidential route, which allowed it to withhold public disclosure of IPO details initially. It received the market regulator's approval in May this year.

 

Motilal Oswal Investment Advisors, Morgan Stanley India Company, Goldman Sachs (India) Securities, JM Financial, IIFL Capital Services, HSBC Securities and Capital Markets (India), and Axis Capital have been roped in by the company to manage the public offering.

 

The company's revenue from operations surged 75.2 per cent year-on-year (Y-o-Y) to ₹7,497.6 crore in the fourth quarter of FY26, compared with ₹4,278 crore in Q4 FY25.

 

On an annual basis, revenue more than doubled to ₹22,623.5 crore in FY26 from ₹11,109.9 crore in FY25.

 

Losses narrowed to ₹1,538.6 crore for the quarter ended March 31, 2026, from ₹1,831.9 crore in Q4 FY25. However, for the full financial year, losses widened to ₹5,905.1 crore from ₹4,699.7 crore in FY25.

 

From FY24 to FY26, Zepto's Net Receivables Value, defined as the total monetary value of orders of goods sold on the platform after net discounts, plus user fees, subscription income and advertisement income, grew from ₹5,231.7 crore in FY24 to ₹24,815.5 crore in FY26.

 

During Q4 FY26, Zepto handled 210 million total orders, up from around 166.9 million orders in the December quarter. The company's store count currently stands at 1,139. It had 47.9 million annual transacting users at the close of FY26.