India’s e-commerce space is gearing up for some primary market action. After Blinkit and Instamart grabbed investor attention, Zepto is now preparing to enter the public markets. International brokerage house Jefferies compared it with its listed rivals and flagged some key gaps. 

According to Jefferies, comparing Zepto with listed rivals is not as straightforward as it appears. The brokerage points out that several key operating metrics used by peers are absent from Zepto’s disclosures, making direct comparisons more challenging.

Let’s take a look a look at Jefferies analysis of the growth opportunities – 

Why Zepto’s disclosures look different

One of the first things that stood out to Jefferies was the way Zepto reports its business metrics.

According to the brokerage report, “its DRHP disclosures differ meaningfully from those of listed peers (Eternal & Swiggy).” Instead of reporting metrics such as Monthly Transacting Users (MTU), Net Order Value (NOV) and Contribution Margin (CM), Zepto has disclosed figures such as Net Revenue Value (NRV), Annual Transacting Users (ATU) and supply chain costs.

The brokerage also noted that “Reported revenue reflects a wholesale-led structure, diverging from the take-rate framework.”

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For retail investors, this means benchmarking Zepto against Blinkit or Instamart may require additional analysis because all three companies follow somewhat different operating structures.

A discount-led strategy 

Zepto which was founded in 2020 has built its business around an Every Day Low Pricing (EDLP) strategy. The model focuses on offering products at competitive prices to encourage customers to order more frequently.

Jefferies added, “Zepto is a scaled Q/C player with a clear EDLP (Every Day Low Pricing) led positioning that mirrors DMart’s value-first retail philosophy.”

The brokerage estimates that Zepto now accounts for around 35% of total order share among the top three quick commerce players. On the basis of Net Order Value, excluding advertising income, its market share is estimated at around 27%.

However, the company continues to operate with lower average order values than competitors. As per the brokerage house report, Zepto’s net average order value is around Rs 360 compared with approximately Rs 500-525 for Blinkit and Instamart.

Losses are narrowing, but profitability remains elusive

A major area of focus for investors will be profitability.

As per Jefferies report, Zepto has made progress in reducing losses on every order. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) loss per order improved to Rs 79 in FY26 from significantly higher levels a year ago. During the Q4FY26, the loss narrowed further to Rs 59 per order.

Jefferies added, “losses remain elevated, despite trending down.”

The company reported an adjusted EBITDA loss of nearly Rs 5,000 crore during FY26, while fourth-quarter losses stood at Rs 1,240 crore crore.

Expansion plans remain aggressive

Jefferies further pointed out that the company is planning to raise around Rs 8,000 crore through the IPO. A significant portion of the proceeds will be used for dark store expansion and lease-related obligations over the next four years.

What should investors watch?

The key takeaway from Jefferies report is that Zepto is delivering rapid growth. However, investors will closely track whether that growth can translate into sustainable profits.

The report added, “Zepto has delivered consistent growth driven by its EDLP proposition.” 

On the other side, the report also highlighted that achieving profitability in quick commerce requires massive scale, operational efficiency and strong order density.

Disclaimer: Investments in the securities market are subject to market risks. This analysis is based on a third-party brokerage report by Jefferies evaluating Zepto’s Draft Red Herring Prospectus (DRHP) and does not constitute an offer, solicitation, or direct investment recommendation to buy, sell, or hold any security. Retail investors should note that quick-commerce operating structures and disclosure metrics differ significantly among industry peers. It is highly recommended to read the complete Draft Red Herring Prospectus filed with SEBI and consult a SEBI-registered investment advisor or qualified financial professional before making any investment decisions. This disclaimer has been generated using AI to support user well-being and responsible content consumption.