Zepto Files for IPO: Rapid Growth and Significant Losses

Zepto, a leading startup in India's quick-commerce sector, has announced plans for an initial public offering (IPO) worth approximately $1 billion. The company, which received one of the largest investments outside the US among Y Combinator projects, disclosed its financial reports on Monday. According to the documents, Zepto's advertising revenue grew by 151% to $171 million in fiscal year 2026, while total operating revenue increased by 104% to $2.4 billion. Techcrunch.com reports .

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, who left Stanford University, Zepto is currently competing with giants like Blinkit, owned by Zomato, and Swiggy Instamart. Additionally, Flipkart, backed by Amazon and Walmart, is strengthening its position in this segment. Despite intense competition, Zepto processed over 640 million orders in fiscal year 2026, nearly double the previous year's figure.

However, this rapid growth comes at a high cost. The company reported a net loss of $617.36 million in fiscal year 2026. In its filing, Zepto acknowledged that losses may continue and that historical growth rates are not guaranteed. This is typical for companies developing on venture capital and seeking to go public before becoming profitable.

As part of the IPO, Zepto plans to raise up to $837.41 million by issuing new shares. Existing investors such as Nexus Venture Partners, Contrary, and Razor Ventures will also sell part of their stakes. Notably, major investors like Y Combinator and Lightspeed have decided to retain their shares and are not participating in the share sale.

The company's market valuation remains an open question. In the last investment round, Zepto was valued at $7 billion, but some funds predict its public market value could be lower. Furthermore, it was revealed that the company's founders were summoned for questioning by Indian law enforcement agencies regarding foreign investment and currency regulations.