Blinkit-rival Zepto is planning to raise $1B via IPO
What's the story
Zepto is planning to increase its IPO size to between $800 million and $1 billion, including secondary shares, as per The Economic Times.
The company's CEO Aadit Palicha has been in talks with major mutual funds regarding Zepto's plans for going public.
Palicha projected gross sales of $5.5 billion for the final quarter of FY26, with positive EBITDA (excluding ESOPs).
This number is roughly equivalent to the total gross sales of the quick commerce industry for the previous calendar year.
Business growth
Zepto's expansion strategy and daily order volume
Having exceeded expectations by running over 900 dark stores, Zepto plans to expand to 1,000 locations.
The company's daily order volume now stands between 1.1 million and 1.3 million orders.
Sales from non-grocery items like electronics, apparel, and general merchandise now account for ₹200 crore monthly in the firm's revenue stream.
This growth is part of a larger plan to scale the business profitably.
Ownership shift
Goal to increase domestic ownership before IPO
Zepto is working to increase its domestic ownership ahead of its IPO, aiming for at least 40% domestic shareholding.
As part of this, Zepto is merging its Singapore parent company with an Indian entity to move its domicile to India.
Goldman Sachs and Morgan Stanley are the lead banks for Zepto's IPO, with plans to add more firms closer to the date of offering.
Financial overview
Financial performance and market competition
In November 2024, Zepto raised $350 million in a funding round, taking its cash reserves to about $1.4 billion. The company competes with rivals such as Flipkart Minutes in the fast-growing sector.
Despite its meteoric growth, Zepto has posted massive losses of about ₹1,000-₹1,100 crore in the last three months to take on top rivals.
The high burn rate has aided Zepto in reaching $3 billion in gross sales while growing its dark store network in mature and new markets.