Quick-commerce major Zepto Limited (formerly Kiranakart Technologies Private Limited) has filed an Updated Draft Red Herring Prospectus (UDRHP-I) dated June 8, 2026, with capital markets regulators, taking it one step closer to a public listing. Below is a detailed breakdown of the offer structure, financials, business model, and the key strengths and risks that investors may want to evaluate.
IPO Snapshot
| Particulars | Details |
|---|---|
| Company | Zepto Limited (Quick Commerce) |
| CIN | U46909MH2020PLC351339 |
| Issue Type | Fresh Issue + Offer for Sale (OFS) |
| Fresh Issue Size | ₹8,010 crore |
| OFS Size | Up to 11,34,66,566 equity shares |
| Face Value | ₹5 per share |
| Price Band / Dates | Not yet announced (marked “TBD” in UDRHP) |
| Pre-IPO Placement Option | Up to ₹1,602 crore |
| Lead Promoters | Aadit Palicha, Kaivalya Vohra & affiliated trusts |
| Statutory Auditor | S.R. Batliboi & Associates LLP |
Note: As this is a Draft/Updated Draft Red Herring Prospectus, the price band, lot size, and bidding dates have not yet been finalised by the company. These will be disclosed only when the Red Herring Prospectus (RHP) is filed closer to the actual issue opening.
About Zepto & Business Model
Zepto operates a quick-commerce platform offering grocery, fresh fruits & vegetables, personal care, packaged food, electronics and other daily-use items delivered through a network of “dark stores.” As of March 31, 2026, the company operated 1,139 dark stores across 66 cities, supported by an in-house automated supply chain and a large gig-based delivery workforce.
Its revenue is primarily generated from four sources: commission on products sold via the platform, advertising income from brand partners, delivery/logistics fees charged to users, and revenue from direct procurement and distribution. The company follows an “Every Day Low Prices” philosophy, aiming to lower per-order costs through scale, automation, and densification of dark stores in each locality.
Key Operating Highlights (FY24 vs FY26)
| Metric | FY2024 | FY2026 |
|---|---|---|
| Dark Stores | — | 1,139 |
| Avg. Transacting Users (mn) | 10.57 | 47.97 |
| Net Receivables Value (₹ cr) | 5,232 | 24,816 |
| Advertisement Revenue (₹ cr) | 49.2 | 1,635.7 |
| Repeat Order % | 94.87% | 96.62% |
| Median Delivery Time (min) | 11.47 | 11.40 |
Financial Performance (Restated Consolidated)
| Particulars (₹ crore) | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations | 4,454.5 | 11,109.9 | 22,623.6 |
| Total Income | 4,544.2 | 11,602.8 | 23,128.4 |
| Net Loss for the Year | (1,214.8) | (4,699.7) | (5,905.2) |
| EPS (Basic & Diluted, ₹) | (1.14) | (3.64) | (5.05) |
| Free Cash Flow | (1,241.4) | (5,332.5) | (4,329.5) |
| Total Equity | 1,717.2 | 8,586.1 | 5,997.9 |
| Cash & Investments (Closing) | 1,688.3 | 7,440.8 | 5,680.5 |
Source: Restated Consolidated Financial Information in the UDRHP-I. Figures converted from ₹ million to ₹ crore and rounded.
Revenue more than doubled in both FY25 (up ~149% YoY) and FY26 (up ~104% YoY), driven by rapid order-volume growth and a sharp rise in advertising income. However, the company has remained loss-making since inception, with net losses widening each year and negative operating cash flows throughout the three-year period under review. Other equity turned negative again in FY26 (₹(2,248.8) crore) after a brief positive position in FY25, reflecting the scale of accumulated losses.
Objects of the Offer (Use of Fresh Issue Proceeds)
| Purpose | Amount (₹ crore) |
|---|---|
| Expansion of dark store network (new stores) | 1,628.98 |
| Lease rentals for existing dark stores | 1,734.94 |
| Technology & cloud infrastructure | 1,324.78 |
| Investment in subsidiary (marketing & brand building) | 520.00 |
| Inorganic acquisitions & general corporate purposes | Balance (capped at 35% of fresh issue) |
Note: The company will not receive any proceeds from the Offer for Sale portion — these funds go entirely to the six selling shareholders (including Nexus Venture Partners entities, Contrary Capital, Razor Capital, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust).
Pros and Cons
Pros
- Market leadership in a fast-growing category: Per the industry report cited in the UDRHP, Zepto recorded the fastest order-volume growth (CAGR ~119.5%) among scaled quick-commerce players in India between FY24 and FY26.
- Strong topline growth: Revenue from operations grew from ~₹4,455 crore in FY24 to ~₹22,624 crore in FY26.
- Rapidly scaling, higher-margin ad business: Advertisement revenue grew from ~₹49 crore (FY24) to ~₹1,636 crore (FY26), supported by an in-house ad-tech platform used by 2,468 brand partners.
- Large and expanding user base: Average transacting users grew nearly 4.5x, from 10.57 million to 47.97 million, between FY24 and FY26.
- High repeat-order ratio: Repeat orders accounted for 96.62% of total orders in FY26, indicating strong platform stickiness for active users.
- Operational efficiencies from scale: Order volume per dark store and automation levels have improved consistently, supporting the company’s stated cost-reduction strategy.
- Backed by marquee global investors including Nexus Venture Partners, Y Combinator, Glade Brook, StepStone and Goodwater, among others.
Cons
- Continued and widening losses: Net loss increased from ~₹1,215 crore (FY24) to ~₹4,700 crore (FY25) to ~₹5,905 crore (FY26), with no profitable year since inception.
- Negative operating and free cash flows in every year presented, reflecting heavy ongoing cash burn to fund growth.
- Declining user retention in recent cohorts: Retention rates for users acquired in FY26 quarters are tracking lower than for users acquired in FY23-FY24, which the company attributes partly to intensifying competition.
- Negative net worth (accumulated losses): Other equity turned negative again as of March 2026, after briefly turning positive in FY25.
- Intensely competitive sector with multiple well-funded quick-commerce and e-commerce players competing for the same user base and dark-store locations.
- Regulatory uncertainty: Quick-commerce business models remain subject to evolving regulations around gig-worker classification, retail/FDI norms, and local commerce rules.
- Key industry data sourced from a company-commissioned report (Redseer), which investors should weigh accordingly.
- Issue price, size finalisation and dates are still undecided at this UDRHP stage — several figures in the document are placeholders pending RHP filing.
Disclaimer: This article is for informational and educational purposes only and is based on publicly filed regulatory documents. It is not investment advice, and should not be construed as a recommendation to buy, sell, or hold any securities. Investments in equity and equity-related instruments, including IPOs, are subject to market risks. Investors are advised to read the complete Red Herring Prospectus/Prospectus when filed and to consult a SEBI-registered financial advisor before making any investment decision.
