Quick commerce giant Zepto is preparing for a significant market debut, with plans to confidentially pre-file its draft IPO papers with India's market regulator by December 26. This strategic move sets the stage for a potential public listing in 2026, positioning it as one of the youngest startups to go public in India. The company's ambition is backed by a recent valuation of US$7 billion following a substantial funding round.
Strategic Filing and Market Positioning
The decision to pursue a confidential filing with the Securities and Exchange Board of India (Sebi) is a calculated one. This route allows Zepto to receive and incorporate regulatory feedback on its draft red herring prospectus before making its IPO intentions public. If successful, this listing would place Zepto in the league of major tech companies like Zomato and Swiggy on Indian exchanges.
Financial Health and Path to Profitability
Zepto's journey towards the public market is underpinned by improving financial metrics and a clear focus on profitability. The company reported revenues of Rs 11,110 crore for fiscal year 2025 and has successfully reduced its monthly cash burn to approximately Rs 100 crore. Management has set a target to achieve EBITDA break-even within the next 12 to 15 months, signaling a strong push for sustainable operations.
Investor confidence remains high, as evidenced by Zepto's recent fundraising activities and soaring valuation. The company secured US$450 million in October 2025, which elevated its valuation to a formidable US$7 billion. Since achieving unicorn status in August 2023, Zepto has impressively raised a total of US$1.8 billion to fuel its rapid expansion and operational enhancements.
Leveraging the Booming Retail Media Market
Zepto's growth aligns with the explosive expansion of India's retail media landscape, a sector projected to grow by 26.4% to Rs 24,280 crore in 2025. Quick commerce platforms are becoming powerful advertising channels, offering consumer brands direct access to shoppers at the point of purchase. This trend presents a significant, near-term revenue stream that complements Zepto's core delivery business and enhances its overall financial model.
The effectiveness of this new advertising channel is notable, with homepage banners on instant delivery apps driving three to four times higher conversion rates than other placements. This performance is attracting significant ad spend, shifting from traditional trade promotions to data-driven strategies. Adtech firms are capitalizing on this by developing hyperlocal tools that leverage first-party shopper data for precise, real-time campaign optimization.
Zepto's planned IPO marks a pivotal moment for the company and India's burgeoning quick commerce sector. While navigating the path to sustained profitability remains a key challenge, its strong market position and potential in the retail media space present compelling opportunities. The successful execution of its public listing in 2026 could set a new benchmark for young, high-growth technology firms in the Indian market.