Quick commerce firm Zepto has moved closer to its public listing plans after filing an updated draft red herring prospectus (DRHP), outlining its intention to raise Rs 8,010 crore through a fresh issue of shares. The offering will also include an offer for sale of up to 11.34 crore equity shares by existing investors.
The company’s proposed initial public offering will comprise a mix of fresh capital infusion and secondary share sales, with each equity share carrying a face value of Rs 5. Notably, any pre-IPO placement, if undertaken, would be capped at 20 per cent of the size of the fresh issue.
According to the filing, the proceeds from the fresh issue will be deployed across multiple strategic priorities aimed at strengthening Zepto’s operational footprint. A significant portion, Rs 1,628.9 crore has been earmarked for expanding its network of dark stores, the backbone of its quick-delivery model. Another Rs 1,734.9 crore is allocated towards lease rentals for existing facilities.
The company also plans to invest Rs 1,324.7 crore in technology and cloud infrastructure to enhance platform capabilities and operational efficiency. Additionally, Rs 520 crore will be infused into its subsidiary, Zepto Marketplace Private Limited, primarily for marketing and brand-building initiatives. The remaining proceeds will be directed towards potential acquisitions and general corporate purposes.
Despite rapid growth, Zepto has flagged continued financial challenges in its filing. The company has reported negative cash flows since inception and continues to post losses as it prioritises expansion. Its restated loss widened to Rs 5,905.1 crore in FY26, up from Rs 4,699.7 crore in FY25 and Rs 1,214.7 crore in FY24.
At the same time, revenue growth has been strong. Revenue from operations surged to Rs 22,623.5 crore in FY26, more than doubling from Rs 11,109 crore in FY25 and significantly higher than Rs 4,454.5 crore reported in FY24. However, this growth has been accompanied by rising costs, resulting in sustained cash burn. Free cash flow stood at negative Rs 4,329.5 crore in FY26, while net cash used in operating activities was Rs 3,462.4 crore. Zepto’s cash reserves, including investments, stood at Rs 5,680.5 crore at the end of March 2026, down from Rs 7,440.7 crore the previous year.
The updated filing comes after a series of large private fundraises that have helped fuel the company’s rapid expansion. Since mid-2024, Zepto has secured multiple rounds of funding from prominent investors including General Catalyst, Nexus Venture Partners, Goodwater Capital, Motilal Oswal, and others. Fundraising highlights include a USD 665 million round in June 2024, USD 340 million in August 2024, USD 350 million in November 2024, and further capital inflows in 2025, including investments from global institutional players such as CalPERS.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
