Indian quick commerce startup Zepto has filed its updated draft prospectus for an initial public offering that could raise about ₹8,010 crore, or roughly $837 million. The filing reveals a story of rapid expansion and significant financial shifts. The company more than doubled its operating revenue in fiscal year 2026, yet its net losses also widened, reflecting the high costs of aggressive growth. However, improving unit economics and a stronger final quarter performance suggest a strategic push toward operational efficiency as it prepares for its public market debut.
A Deep Dive into Annual Financials
For the fiscal year ending in March 2026, Zepto's operating revenue surged to ₹22,623.6 crore, a substantial increase from ₹11,109.9 crore in the previous year. This growth was driven primarily by the sale of goods, supplemented by income from services such as platform fees and advertising. The company's total income, including other earnings, stood at ₹23,128.4 crore for the year.
Despite the revenue jump, consolidated net losses grew by 26% to ₹5,905 crore from ₹4,695.4 crore in the prior fiscal year. This was largely due to a sharp rise in total expenses, which reached ₹29,026.7 crore. Key cost drivers included increases in spending on delivery and handling, warehousing, and employee benefits.
Signs of Improving Efficiency
Amid the widening full-year losses, Zepto demonstrated improvements in operational efficiency. The company's adjusted EBITDA loss per order fell to ₹78.75 in FY26, compared with ₹136.15 in FY25. This reduction indicates that the company is improving its unit economics as it continues to scale operations.
The final quarter of the fiscal year highlighted this positive trajectory, with operating revenue rising 27% quarter-over-quarter to ₹7,497.6 crore. More importantly, Zepto narrowed its net loss by 9% to ₹1,538.7 crore during the period. Its adjusted EBITDA loss per order also improved to ₹59.4, signaling progress toward better profitability metrics.
The Upcoming Initial Public Offering
The company's public offering will comprise a fresh issue of shares worth ₹8,010 crore and an offer-for-sale of up to 113.5 million shares by existing shareholders. Zepto may also raise up to ₹1,602 crore through a pre-IPO private placement, which would reduce the size of the fresh issue.
Zepto intends to use the proceeds from the fresh issue for strategic expansion and operational enhancements. A significant portion of the capital is earmarked for expanding its dark store network, which stood at 1,139 at the end of FY26. Funds are also expected to go toward technology, marketing, and potential inorganic growth opportunities.
Market Position and Competitive Pressures
Zepto's IPO is set to be a major test for a standalone quick commerce player in the Indian public markets. The company operates in a fiercely competitive environment, contending with established rivals such as Blinkit and Swiggy Instamart. Its performance after listing will be closely watched as an indicator of investor appetite for high-growth but loss-making quick commerce businesses.
The filing shows that Zepto has achieved significant scale, but it also highlights the pressure to balance growth with a clearer path to profitability. While its unit economics have improved, the company remains loss-making and continues to spend heavily to expand its network, acquire customers, and compete in a crowded market.
In conclusion, Zepto's public offering filing paints a picture of a company on a high-growth trajectory while grappling with the costs of scaling. Its success will depend on its ability to sustain revenue growth while continuing to improve its unit economics in a highly competitive market. The IPO marks a pivotal moment for Zepto, its investors, and the future of India's quick commerce industry.