Zepto said to plan confidential IPO filing on Dec 26

Zepto plans to confidentially pre-file its draft red herring prospectus with India’s market regulator Sebi on December 26, aiming for an IPO in 2026, according to sources.

The confidential filing allows Zepto to receive Sebi’s feedback before making its IPO plans public.

If successful, Zepto would be among the youngest startups to list on Indian exchanges, alongside Zomato and Swiggy.

Zepto operates a quick commerce platform offering rapid grocery delivery.

It was valued at US$7 billion after raising US$450 million in October 2025, and has raised US$1.8 billion in total since reaching unicorn status in August 2023.

🔗 Source: The Times of India

🧠 Food for thought

Implications, context, and why it matters.

Zepto’s IPO plan rests on untested order profits and unclear finances

Zepto says unit economics (profitability per order) improved in FY25 1. It has not shared audited net losses or contribution margins (revenue minus variable costs) 1, so judging its profit path before a 2026 IPO is tough.
Monthly burn (net cash outflow) dropped to about Rs 100 crore mid-year 1. It went back to Rs 200-300 crore after fee cuts to compete 1. Rs is Indian rupees.
FY25 revenue stood at Rs 11,110 crore 2. Blinkit’s GOV (gross order value) was Rs 28,274 crore 1, though revenue and order value cannot be stacked one-to-one 1. Zepto has been in talks to raise $500 million at about a $7 billion valuation 2.
The company targets EBITDA (earnings before interest and taxes plus depreciation plus amortization) break-even in 12-15 months 3. That goal remains unverified as a Bank of America report put Blinkit above 50% market share 1, with Zepto trailing on MAUs (monthly active users) and QoQ (quarter-over-quarter) GOV growth 1.

Quick commerce ads are rising fast, opening near-term wins for brands and adtech

India’s retail media revenues are projected to grow 26.4% to Rs 24,280 crore in 2025 4. Combined ad revenues from major ecommerce platforms crossed Rs 15,500 crore in FY25 with over 25% year-on-year growth 4.
For consumer brands, homepage hero banners on instant delivery apps drive 3-4x higher conversion than mid-page slots 5. Search-result sponsored products bring the strongest intent signal in peak shopping periods 5.
Adtech firms can win performance budgets with hyperlocal tools that optimize by neighborhood, weather, or time of day 5. CPMs (cost per thousand impressions) on quick commerce platforms doubled in festive and sale periods, and ad spend grew 50% year-on-year 5.
This channel is shifting from short-term trade spend to smarter decisions built on first-party shopper data (information a retailer collects directly from its customers) 4. Brands can predict trends and personalize experiences at the point of purchase 4.