Zepto IPO

Strengths · 8

• 01Order volume grew from 132.87 million in FY2024 to 640.18 million in FY2026, a CAGR of about 119.50% between Fiscal 2024 and Fiscal 2026 as recorded in the Redseer report.
• 02Net Receivables Value rose from Rs 5,231.70 crore in FY2024 to Rs 24,815.54 crore in FY2026, a growth of 95.34% over FY2025.
• 03Advertisement revenue, which carries no delivery cost, grew from Rs 49.17 crore in FY2024 to Rs 1,635.73 crore in FY2026 and was 7.78% of Net Receivables Value in FY2026.
• 04Adjusted EBITDA loss per order narrowed from Rs 136.15 in FY2025 to Rs 78.75 in FY2026, and Adjusted EBITDA as a share of NRV improved from negative 35.59% to negative 20.32%.
• 05The dark store count rose from 337 at the end of FY2024 to 1,139 at the end of FY2026, and orders per day per store rose from 1,325 to 1,677 over the same period.
• 06Annual transacting users were 47.97 million as of 31 March 2026, against 10.57 million as of 31 March 2024.
• 07The company had no borrowings as of 31 March 2026 and a closing cash balance including investments of Rs 5,680.53 crore.
• 08The statutory auditors have not expressed any qualification, reservation or adverse remark on the financial statements for the three years covered in the document.

Risks · 10

• 01The company has lost money since inception. The restated loss was Rs 5,905.19 crore in FY2026, Rs 4,699.71 crore in FY2025 and Rs 1,214.79 crore in FY2024, and the first risk factor states losses may continue.
• 02Operating cash flow was negative Rs 3,462.44 crore in FY2026 and free cash flow was negative Rs 4,329.54 crore, so the business still funds itself from investor money rather than operations.
• 03Net worth fell from Rs 6,147.84 crore as of 31 March 2025 to Rs 3,559.60 crore as of 31 March 2026, and other equity was negative Rs 2,248.79 crore at the end of FY2026.
• 04Rs 1,734.94 crore of the net proceeds goes towards lease rentals of existing dark stores. That is an operating cost of the current network, not spending that builds a new asset.
• 05Up to 35% of the gross fresh issue proceeds may go to unidentified acquisitions and general corporate purposes, with general corporate purposes capped at 25% and acquisitions at 10%, so a large part of the use of funds is not specified yet.
• 06The offer for sale of up to 11,34,66,566 shares is entirely by six investor selling shareholders whose weighted average cost of acquisition ranges from Rs 3.91 to Rs 23.65 per share, and the company receives nothing from that money.
• 07Promoter holding is small against investor holdings. Lazarus Trust holds 9.03% and The Vohra Trust 7.48% on a fully diluted basis, the two founders hold 1.07% and 0.89% directly, while Nexus Ventures VI Holdings holds 8.57% and Glade Brook Private Investors XXXIV LP holds 7.73%.
• 08There are 19 tax proceedings and 21 statutory or regulatory proceedings against the company, plus 2 other material litigations, with an aggregate amount of about Rs 101.89 crore involved, and a further Rs 0.33 crore against subsidiaries.
• 09User growth is slowing. Annual transacting users grew 25.00% in FY2026 against 263.18% in FY2025, and the quarterly count fell from 49.54 million in December 2025 to 47.97 million in March 2026.
• 10Operations started only in July 2021 and the company lists limited operating history among its top 10 risk factors, along with intense competition and dependence on retaining Delivery Partners and Merchant Partners.

Zepto Limited runs a quick commerce platform that delivers groceries and everyday essentials to users in minutes. Users browse, order and pay on the Zepto app for products listed by third party Merchant Partners, which are processed at dark stores the company operates and taken to the user by last mile Delivery Partners. The assortment covers fresh fruits and vegetables, staples, household goods, electronics and cosmetics. The company reports its business as a single operating segment under Ind AS 108, and all of its operations are in India.

Revenue comes from four places: commission on products sold on the platform, advertisement revenue from Brand Partners, fees charged for delivery and logistics services, and revenue from procurement and distribution, where Zepto sources products from brands and sells them to wholesalers and retailers on a non exclusive basis. Advertisement revenue was Rs 1,635.73 crore in FY2026 against Rs 49.17 crore in FY2024, and worked out to 7.78% of Net Receivables Value in FY2026.

The delivery network is leased. As of 31 March 2026 the company had 1,139 dark stores and 75 warehouses on leased or licensed premises, against 337 dark stores at the end of FY2024. Orders per day per store were 1,677 in FY2026 against 1,325 in FY2024. The platform handled 640.18 million orders in FY2026, or 1,753,915 orders a day, and had 47.97 million annual transacting users as of 31 March 2026.

The registered office is at Hiranandani Lighthall, A Wing, 6th floor, Saki Vihar Road, Andheri East, Mumbai 400 072, and the corporate office is on Sarjapur Main Road, Kaikondarahalli, Bengaluru 560 103. The company began business operations in July 2021. The business was earlier held under Kiranakart Pte. Ltd., whose shareholders were issued shares of Zepto Limited under a scheme, after which the shares held by Kiranakart Pte. Ltd. in the company stood cancelled. Aadit Palicha is the Managing Director and Chief Executive Officer and Kaivalya Vohra is the Whole Time Director.

The industry

The Redseer report puts India's retail market at about Rs 91 trillion, or about US$1,066 billion, as of CY2025, and projects growth of 1.5 to 1.6 times by GMV to Rs 135 trillion to Rs 148 trillion by CY2030. Quick commerce inside that market grew from about Rs 133 billion in CY2022 to about Rs 963 billion in CY2025 and is projected to reach Rs 5.1 trillion to Rs 7.1 trillion by CY2030. Quick commerce was about 3% of online retail GMV in CY2022, rose to about 13% by CY2025 and is projected at 26% to 30% by CY2030, and it now accounts for over two thirds of online grocery orders. The report records Zepto's order volume growing at a CAGR of about 119.50% between Fiscal 2024 and Fiscal 2026, the fastest among scaled quick commerce platforms in India over that period.

Customer concentration: The document states that revenue concentration among the top 5 customers is not applicable, as orders come from a user base of 47.97 million annual transacting users as of 31 March 2026.