Zepto Plans $1.2 Billion IPO

Indian quick-commerce startup Zepto has confidentially filed papers for an initial public offering (IPO), according to a public notice shared on Sunday. The company plans to raise around ₹110 billion (about $1.22 billion) through fresh funding. Zepto was last valued at $7 billion in October during its previous funding round.

Zepto said it has chosen the confidential filing route, which means the details of its IPO documents are not public yet. The company has not shared more information about the listing plans.

Quick commerce, which promises deliveries in 10 to 15 minutes, has become one of the most competitive sectors in India’s online retail space. Big players are entering aggressively. Amazon recently launched its 15-minute delivery service, Amazon Now, in major cities like Mumbai, Delhi, and Bengaluru. The company plans to set up over 300 micro-fulfillment centers across these cities.

Flipkart, owned by Walmart, also entered the quick-commerce market in 2024. Indian companies like Swiggy, Zomato-owned Blinkit, and Eternal were among the early players and continue to expand rapidly.

Experts say quick commerce currently makes up about 10% of India’s e-commerce market, but this could grow to 40–50% in the coming years. However, heavy competition has led to price wars, with companies spending large amounts to attract customers.

Despite strong growth, concerns are rising about whether this rapid expansion is sustainable. Several companies are still posting heavy losses. Zepto’s losses reportedly increased sharply in the last financial year. Swiggy also reported higher losses, while Eternal managed to report a profit.

Industry leaders have warned that the sector may be heading toward a bubble if companies do not focus on becoming profitable. Some believe that continuous fundraising to cover losses cannot continue forever, and quick-commerce firms will soon need to prove they can make money.