Zepto Eyes Stock Market! Unicorn Board Approves Public Conversion - IPO Next?

Zepto Accelerates IPO Plans with Board Approval

Quick commerce startup Zepto has taken a significant stride towards becoming a publicly traded company. The company's board has reportedly approved its conversion from a private limited entity to a public limited company, signaling a major step in its journey towards an Initial Public Offering (IPO).

Key Developments in IPO Preparation

• Shareholders reportedly cleared the resolution for conversion on November 21, according to news agency PTI. While regulatory filings were not immediately found on the Registrar of Companies' website, this conversion is a mandatory first step before any IPO filing.
• Sources indicate that Zepto intends to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) later this month.
• The company is reportedly targeting a public listing by June 2026, aiming to join India's growing list of tech unicorns on the stock exchange.

Growth and Financial Trajectory

A Zepto spokesperson highlighted the company's strong growth trajectory, stating, "We’re growing 20-25% every quarter on order volume, and burn is going down." They emphasized improved capital efficiency for over 100% year-on-year growth.

• Zepto's revenue surged by an impressive 149% to INR 11,100 crore in the fiscal year 2025, up from INR 4,454 crore in the previous fiscal year.
• However, the company posted a net loss of INR 1,248.64 crore in FY24, with bottom-line figures for FY25 not yet available.

Funding and Strategic Moves

This potential IPO follows a period of substantial funding. In October, Zepto raised $450 million (approximately INR 3,955 crore) at a valuation of $7 billion. Earlier in the year, it secured INR 400 crore (about $45.7 million) from Motilal Oswal Financial.

• To comply with listing regulations and enhance domestic ownership, Zepto shifted its domicile to India from Singapore earlier this year.
• Its registered entity was also renamed to Zepto Pvt Ltd from Kiranakart Technologies Pvt Ltd.

Company Background

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto operates a quick commerce platform promising delivery of groceries and other essentials within 10 minutes. As of September 2025, the company reportedly operated over 900 dark stores across its network.

Market Context

Zepto had previously considered an IPO for 2025 or early 2026 but deferred the plans to concentrate on growth, profitability, and increasing domestic ownership. This latest move suggests renewed confidence and readiness for public markets.

Impact

• Zepto's successful IPO could bring a new, high-growth tech stock to the Indian bourses, offering investors exposure to the booming quick commerce sector.
• It could intensify competition within the quick commerce and broader e-commerce space as the company gains access to public capital for expansion.
• The move is likely to boost investor sentiment towards Indian startups and the potential for tech IPOs.

Impact Rating: 8/10

Difficult Terms Explained

• Unicorn: A privately held startup company valued at over $1 billion.
• Initial Public Offering (IPO): The process by which a private company first offers its shares to the public, becoming a publicly traded company.
• Public Limited Company: A company whose shares are available for the public to trade on a stock exchange.
• Private Limited Company: A company whose ownership is restricted and shares are not offered to the public.
• Draft Red Herring Prospectus (DRHP): A preliminary registration document filed by a company with the securities regulator before an IPO.
• SEBI (Securities and Exchange Board of India): India's regulatory body for securities markets.
• Offer for Sale (OFS): A process where existing shareholders sell their stake in a company to new investors, typically during an IPO.
• Dark Stores: Small, warehouse-like facilities used by e-commerce companies for rapid delivery, typically not open to the public.
• Domicile: The legal home of a company, usually where it is registered.