Zepto Prepares Confidential IPO Filing of $500 million as Quick-Commerce Competition Intensifies

BY - Opportunity India Desk
Editor Dec 18, 2025 /

28 / 2 Min Read

Zepto Prepares Confidential IPO Filing of $500 million as Quick-Commerce Competition Intensifies

Zepto is understood to be working with Axis Bank, Motilal Oswal Investment Advisors and Indian units of global investment banks including Morgan Stanley, HSBC and Goldman Sachs.

Quick-commerce major Zepto Ltd is moving closer to the public markets, with plans to file draft papers for an initial public offering (IPO) of approximately $500 million (around ₹4,000 crore), according to a report citing people familiar with the development.

The grocery delivery startup is expected to submit its draft red herring prospectus as early as next week through the confidential filing route. Zepto is understood to be working with Axis Bank, Motilal Oswal Investment Advisors and Indian units of global investment banks including Morgan Stanley, HSBC and Goldman Sachs to manage the proposed issue.

Sources indicate that the IPO is likely to comprise a mix of fresh equity issuance and an offer for sale by existing shareholders. Proceeds from the public offering are expected to be deployed towards business expansion, with a focus on scaling Zepto’s dark-store network, enhancing last-mile delivery capabilities and supporting operational growth. The final size and timing of the issue remain under discussion and could be revised.

Zepto’s move comes amid intensifying competition in India’s rapidly expanding quick-commerce segment, where demand for ultra-fast delivery of groceries and daily essentials continues to rise in urban centres. Companies in the space are racing to increase warehouse density and delivery capacity to capture market share, even as the path to sustained profitability remains a key industry challenge.

The sector has drawn strong interest from global investors, reflecting confidence in India’s long-term consumption growth. Zepto operates in a highly competitive landscape that includes Amazon India and domestic players such as Swiggy, Zomato and Tata Group-owned BigBasket. The planned IPO follows Zepto’s $450 million funding round in October, which reportedly valued the company at close to $7 billion, positioning it among the most valuable startups in India’s quick-commerce ecosystem.

This article was originally published by the Franchiseindia.com. To read the full version, visit here Entrepreneur Blog Link

Zepto Prepares Confidential IPO Filing of $500 million as Quick-Commerce Competition Intensifies