In a significant move that could reshape India’s quick commerce landscape, Chennai-headquartered Zepto is considering a substantial increase in its initial public offering (IPO) size to between $800 million and $1 billion, marking one of the largest startup public offerings in recent years. The company, which has emerged as a frontrunner in the competitive quick delivery space, is simultaneously projecting ambitious gross sales of $5.5 billion by the fourth quarter of FY26.
CEO Aadit Palicha has been actively engaging with major mutual funds to discuss the company’s public offering strategy, which has evolved considerably since its initial planning phase in mid-2024. The revised IPO structure is expected to include both primary capital and a significant secondary share component through an Offer for Sale (OFS).
The expanded IPO plans represent a dramatic scaling up from the company’s initial target of $450 million in primary capital. Industry sources indicate that the revised structure could include $300-400 million in secondary shares, alongside an increased primary fundraise. Goldman Sachs and Morgan Stanley have been appointed as lead banks for the offering, with additional firms expected to join closer to the launch.
Zepto’s remarkable growth trajectory is evidenced by its expanding operational footprint, with the company surpassing 900 dark stores and approaching its target of 1,000 locations. The company currently processes between 1.1 million and 1.3 million orders daily, with non-grocery categories including electronics, apparel, and general merchandise contributing approximately Rs 200 crore in monthly revenue.
“The quick commerce sector in India has evolved rapidly, and Zepto’s growth reflects the massive market opportunity,” says Dr. Rajesh Kumar, a retail sector analyst at Chennai Business School. “Their expansion plans and the scale of the proposed IPO could create significant employment opportunities in Tamil Nadu’s technology corridor.”
However, this growth has come at a considerable cost. Recent reports indicate that Zepto has invested heavily in expansion, spending approximately Rs 1,000-1,100 crore over the past quarter to compete with rivals like Flipkart Minutes and Blinkit. This aggressive spending has helped the company achieve $3 billion in gross sales, positioning it just behind Blinkit’s $3.7 billion.
The company’s focus on domestic ownership is particularly noteworthy, with plans to achieve at least 40% domestic shareholding before the IPO filing. This strategy includes merging its Singapore parent company with an Indian entity to establish domestic domicile, a move that could strengthen its position in the Indian market.
For Tamil Nadu’s startup ecosystem, Zepto’s IPO plans represent a significant milestone. “This could be a game-changer for Chennai’s startup landscape,” notes Priya Venkataraman, Director of TN Startup Hub. “A successful IPO of this magnitude would not only attract more investment to the region but also inspire the next generation of entrepreneurs in Tamil Nadu.”
The company enters this crucial phase with strong financial backing, having raised $350 million in November 2024, bringing its total cash reserves to approximately $1.4 billion. While the final IPO valuation remains under discussion, the company is analyzing comparable metrics from competitors like Blinkit, which reported a 120% year-on-year increase in gross order value for the December quarter.
As Zepto prepares for this landmark offering, its success could set new benchmarks for quick commerce startups and strengthen Tamil Nadu’s position as a leading startup hub in India. The IPO’s outcome will be closely watched by investors and entrepreneurs alike, potentially paving the way for more startup listings from the region.
