Zepto Reports Significant Revenue Growth Ahead of IPO

Indian quick commerce company Zepto is gearing up for a major stock market listing. The company, known for its rapid delivery of groceries and essentials, has outlined a significant fresh issue and offer for sale as part of its pre-IPO preparations.

For the fiscal year FY26 (ending March 2026), Zepto reported operating revenue of ₹22,623.58 crore. However, the company posted a net loss of ₹5,905.19 crore after accounting for expenses and exceptional items. This financial performance has raised questions among potential public market investors regarding the sustainability of its growth, which appears to be financed by discounts and expenditures.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto rapidly scaled its operations, focusing on a 10-minute delivery model. The company has since undergone restructuring, including the incorporation of Zepto Marketplace Pvt Ltd (ZMPL), to transition towards a marketplace model and comply with regulatory frameworks. This evolution aims to solidify its position in India's competitive quick commerce landscape, which includes rivals like Blinkit and Swiggy's Instamart.

Zepto's primary revenue stream comes from the sale of traded goods, accounting for approximately 77.7% of its operating revenue in FY26. Revenue from services, including warehousing, packaging, and last-mile delivery, constitutes the next largest segment. The company attributes its losses partly to expansion efforts and the launch of new dark stores, with management stating that mature stores are becoming profitable.

As Zepto moves towards its initial public offering, its ability to demonstrate a clear path to profitability alongside continued growth will be crucial. The market will be closely watching how the company manages its costs and leverages its operational scale to achieve financial viability in the highly competitive quick commerce sector.