Zepto converts to public company ahead of planned IPO

Zepto, a Bengaluru-based quick commerce startup, has converted from a private to a public company as it prepares for an IPO.

It changed its name from Zepto Private Limited to Zepto Limited after shareholders approved a special resolution.

The company is expected to file its draft prospectus before December 15, and a regulatory filing said it intends to list its shares on one or more stock exchanges.

Zepto recently closed a US$450 million funding round at a US$7 billion valuation, with about US$300 million coming from existing investors such as Lightspeed, Avenir Growth, and General Catalyst.

The company may seek to raise US$450 million to US$500 million through the IPO.

Zepto is among several Indian tech startups, including PhonePe, Shadowfax, Shiprocket, Boat, and Curefoods, planning public listings, while Swiggy is preparing to raise funds through a qualified institutional placement.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Zepto’s IPO timing hinges on unproven path to profitability by FY26

CEO Aadit Palicha targets profitability by FY26. In FY24 the company spent Rs 1.29 for every Rs 1 earned 1. EBITDA (Earnings before interest/taxes/depreciation/amortization) margin was -23.81% 1.
Revenue more than doubled to Rs 4,454 crore in FY24 from Rs 2,026 crore in FY23 1. Losses fell 2% to Rs 1,248.6 crore 1.
The network has grown past 550 dark stores (delivery-only micro-warehouses) 1. Daily orders top 700,000 1. Procurement cost hit Rs 3,481 crore and warehousing expenses were Rs 493 crore 1. An 18 month path to profit looks hard with these unit economics.

Consumer brands can leverage Zepto’s Rs 1,000 crore annualised ad business before IPO competition intensifies

Zepto crossed Rs 1,000 crore in annualized ad revenue 2. Monthly take is about Rs 83 crore 2. It launched Jarvis, an in-house ad platform for optimized campaigns 2.
Partners include Criteo 3 and The Trade Desk 4. Brands can target 60 million monthly users across over-the-top (OTT), connected TV (CTV), and streaming apps using first-party purchase data with closed-loop attribution (linking ad exposure to actual purchases) 4.
Budgets keep shifting to retail media, which are ads on retailer-owned properties. BN Group plans to spend 20% on quick commerce 2. HRX puts 60–70% into retail media, largely via Myntra 2. Ad slots stay less crowded with better placement during mindful moments 2.