Zepto in talks to increase IPO size to $800 million-$1 billion: Report

Zepto

Quick commerce startup Zepto is in talks to increase the size of its initial public offering to $800 million-$1 billion, The Economic Times has reported. Zepto earlier planned to raise $450 million through the issue.

"There will be an overall increase in offering size unless the markets turn wildly the other way. It would be in the range of around $800 million or above, as at least $300–400 million worth of shares may be sold in OFS (offer for sale) along with an increase in the primary fundraise through the issuance of new shares," the report quoted a source as saying.

Zepto CEO Aadit Palicha met top mutual funds houses in recent weeks to discuss the IPO plans. He has projected $5.5 billion gross sales for the January-March quarter of FY26, with EBITDA (excluding ESOPs) going positive, the report added. The projected growth in sales is almost equivalent to the annual gross sales recorded by the entire quick commerce industry in the previous calendar year.

Moneycontrol could not independently verify the report.

Earlier this month, Zepto received approval from National Company Law Tribunal (NCLT) to reverse flip to India from Singapore ahead of its IPO. Moneycontrol was the first to report that the quick commerce firm has set up a new entity, Zepto Marketplace Private Ltd, to simplify operations ahead of the IPO.

The firm has picked investment banks such as Goldman Sachs, Morgan Stanley and Axis Capital as advisers for the issue. "Zepto is planning to list sometime in the second half of next year, around August 2025," a source told Moneycontrol in September.

This comes after the company raised $350 million through a funding round in November, the third in five months. Earlier in 2024, it raised $1.05 billion in two tranches. The first $665-million round closed on June 21 and the remaining $340 million on August 29. After the latest fundraising round, Zepto was valued at $5 billion.

Zepto is the second largest quick commerce player in India, with a market share of 29 percent, trailing Blinkit's 46 percent. Swiggy's Instamart is in teh third place with a 25 percent share, a recent report by Motilal Oswal said.