Quick commerce firm Zepto has received approval from its board of directors for Rs 11,000 crore initial public offering (IPO), as per an Entrckr report. The report stated that the offer will be a mix of fresh equity issue and offer for sale. 

Financialexpress.com could not confirm the news independently yet. We have written to Zepto seeking clarification regarding the same and will update as soon as we hear from them.

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The Entrackr report added that Zepto is likely to file a confidential Draft Red Herring Prospectus (DRHP) this week. The company has recently raised $450 million from investors, taking its total funding to $2.3 billion. In the last funding round, the Q-comm major was valued at $7 billion.

Also, Zepto has appointed its Founders, Aadit Palicha and Kaivalya Vohra, along with Chief Financial Officer Ramesh Bafna, as whole-time directors, after shareholders ‘approval at an extraordinary general meeting held on December 23.

Zepto’s FY25 loss widens 

Zepto’s loss in the fiscal year 2025 increased by 177 per cent YoY to Rs 3,367.3 crore, the company’s finnacial statement showed. The company’s net loss in FY24 was Rs 1,214.7 crore, a sharp rise this year as competition in the quick commerce space intensifies. 

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While the company’s loss has widened sharply, its total sales have also grown substantially in FY25, about 129 per cent on a yearly basis. Zepto posted a total sales of Rs 9,668 crore in FY25, compared to Rs 4,223 crore in FY24. 

How does Zepto fare against competitors 

However, it is essential to note that, according to industry standards, operational revenue is typically recognised at 15-20% of the gross merchandise value (GMV). This would translate to an operational revenue between Rs 1,500 crore and Rs 2,000 crore.

Blinkit and Swiggy Instamart had revenue from operations of Rs 5,206 crore and Rs 2,252 crore, respectively, in FY25. In FY25, Swiggy Instamart reported an adjusted Ebitda loss of Rs 2,095 crore, significantly wider than market leader Blinkit, which capped its adjusted Ebitda loss at Rs 292 crore for the same period.