Zepto Secures SEBI Approval for ₹11,000 Crore IPO, Paving Way for Landmark Quick-Commerce Listing
In a significant milestone for India’s startup ecosystem, the Securities and Exchange Board of India (SEBI) has officially approved quick-commerce unicorn Zepto’s initial public offering (IPO) plans, setting the stage for one of the most anticipated listings in the country’s startup history .
Green Light from Regulator
On May 8, 2026, SEBI issued its observation letter to Zepto, which, in regulatory parlance, is equivalent to granting approval to proceed with a public offering . Zepto had confidentially filed its draft red herring prospectus (DRHP) with the regulator in December 2025, opting for the confidential pre-filing route that allows companies to seek initial feedback without immediate public disclosure .
The approval arrives just five years after Zepto’s founding in 2020 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, making it one of the youngest venture-backed Indian startups to reach the public markets .
IPO Size and Valuation
According to multiple reports, Zepto is targeting an IPO size of approximately ₹11,000 crore ($1.3 billion) . The issue is expected to consist primarily of a fresh issuance of shares, meaning the bulk of the capital will flow directly into the company rather than to existing shareholders exiting .
The company is aiming for a valuation of **7−8billion∗∗foritspubliclisting,aligningwithitslastprivatefundraisingroundinOctober2025,whereitraised450 million led by the California Public Employees’ Retirement System (CalPERS) at a valuation of $7 billion .
Competitive Landscape Intensifies
The IPO comes at a pivotal moment in India’s quick-commerce war. Zepto will go head-to-head with listed rivals Eternal-owned Blinkit and Swiggy Instamart, as well as newer entrants including Flipkart Minutes and Amazon Now .
The fresh capital will be strategically deployed to expand Zepto’s dark store network and strengthen its presence in Tier-2 cities, as the company seeks to capture a larger share of the rapidly growing instant delivery market . Currently, Zepto reportedly delivers approximately 2.5 million orders daily, up from 1.5-1.7 million previously .
IPO Timeline
The company is now expected to file an updated draft red herring prospectus (UDRHP) within six to eight weeks, followed by the formal launch of its public offering . According to reports, the listing could take place within 60 to 90 days . The proposed listing is expected in the July-September quarter of 2026 .
Financial Resilience and Investor Interest
Zepto currently holds approximately ₹6,000-7,000 crore in cash reserves, providing the company with a strong liquidity cushion ahead of its IPO launch . The company has raised a total of $1.8 billion (approximately ₹16,000 crore) from marquee investors since inception .
The company’s cap table includes prominent investors such as General Catalyst, Nexus Venture Partners, Lightspeed Venture Partners, Avenir Growth Capital, and Motilal Oswal Financial Services .
A Milestone for Quick Commerce
Zepto’s IPO will mark the first pure-play quick commerce listing in India, following its peers Swiggy and Zomato, which are already listed on the stock exchanges . The approval signals renewed investor confidence in India’s internet and startup listing market after a successful IPO run in 2025 .
Investment bankers working on the issue include Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities, and Motilal Oswal
