Zepto Files UDRHP for Rs 8,010 Crore Fresh Issue; Nexus Venture Claims 77% of OFS
Zepto, a prominent name in India’s quick commerce sector, has moved a step closer to going public by filing an updated draft red herring prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI). This filing marks a significant milestone for the company, which seeks to raise Rs 8,010 crore through a fresh issue of equity shares. The move follows SEBI’s approval of Zepto’s initial public offering (IPO) plan last month, highlighting the growing investor interest in quick commerce—a sector that has gained immense traction in India’s urban centers.
Zepto’s Market Position and IPO Details
Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly emerged as a key player in the quick commerce industry, delivering groceries and daily essentials with remarkable speed. The company, initially known as Kiranakart Technologies Private Limited, underwent a rebranding to Zepto Private Limited in April 2025 before becoming a public company in December 2025. The IPO will feature a fresh issue of Rs 8,010 crore and an offer for sale (OFS) comprising 113.47 million shares from existing investors. Nexus Ventures, one of Zepto’s notable backers, will account for a significant 77% of the OFS. The IPO is structured under SEBI’s Regulation 6(2), which allows companies not meeting standard profitability criteria to access capital markets.
The funding process includes a potential pre-IPO placement of up to Rs 1,602 crore, which could adjust the final size of the fresh issue. Zepto’s IPO is managed by leading financial institutions, including Axis Capital, Morgan Stanley, and Goldman Sachs, ensuring robust advisory support.
Competitive Landscape and Funding Environment
Zepto’s IPO comes at a time when the quick commerce sector is experiencing rapid evolution, driven by urban consumers’ demand for convenience and speed. The company faces competition from other Indian startups like Swiggy’s Instamart and Dunzo, as well as international players like JioMart, which are all vying for market share in the same space.
The funding environment for Indian startups, especially in the quick commerce domain, has been vibrant, with significant investments flowing into the sector. However, the path to profitability remains a challenge, as evidenced by Zepto’s financials. For the fiscal year ending March 2026, Zepto reported a doubling of revenue to Rs 22,623 crore, while its losses increased by 25% to Rs 5,905 crore. This underscores the delicate balance between growth and financial sustainability that companies in this space must navigate.
Implications for India’s Startup Ecosystem
Zepto’s move to go public is indicative of the broader trend of Indian startups maturing and seeking public capital markets as a viable funding avenue. It also reflects the increasing willingness of Indian regulatory bodies to accommodate innovative business models that may not yet be profitable. The IPO could set a precedent for other emerging startups in the quick commerce and broader e-commerce sectors, encouraging them to consider similar paths to raise growth capital.
For founders and investors in India’s tech ecosystem, Zepto’s IPO will be closely watched. The outcome could influence future investment decisions and strategies, particularly in sectors where rapid growth is prioritized over immediate profitability. Investors will be keen to see how Zepto’s public debut unfolds, as it could signal the market’s appetite for quick commerce stocks and potentially pave the way for more IPOs in the sector.
