Zepto’s fast growth meets hard maths

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In focus

• ​​Inside Zepto’s IPO rush
• ​​The water supply issue underlying SEA’s data center ambitions
• A look back at our previous interview with ElevenLabs’ CEO and co-founder

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Hello reader,

Cracked eggs, rotten vegetables, and expired items – after a string of bad experiences over the past few months, I’ve reduced my reliance on quick commerce apps. I have also become more conscious of each delivery’s environmental impact, so now I feel a twinge of guilt every time I open one of these apps.

Whenever I turn to quick commerce these days – only for groceries – I do so more intentionally. What used to be a daily habit is now down to about two to three orders a week (at least that’s the plan). This works, thanks to the occasional trips I make to the neighborhood kirana store.

I know I’m not the only one embracing such a change, especially at a time when quick commerce has increasingly faced scrutiny from regulators and resistance from delivery riders over poor working conditions and sustainability concerns. The honeymoon phase may indeed be over.

And yet, this is precisely the moment Zepto is heading to the public markets. In today’s first top story, I unpack what’s driving the company’s rush to an IPO.

One of the OGs of quick commerce in India, Zepto is preparing for a US$1.3 billion IPO. While the firm’s revenue doubled to roughly US$1 billion in FY25, its losses rose to US$366 million, nearly 3x the previous year. Public markets don’t reward speed alone; they demand discipline.

With losses growing and competition intensifying from Blinkit, Swiggy Instamart, and retail giants like Reliance and Amazon, Zepto now has to prove it can make money. A shift to an inventory-led model could improve its margins, but this requires domestic ownership above 50% under India’s Foreign Direct Investment rules, making the IPO strategically important.

Groceries can still arrive at your doorstep in minutes; delivering sustainable profits is now the real challenge for Zepto.

If quick commerce strains the environment, AI poses an even greater threat. Our next top story digs into the heavy water demands of the data centers fueling Southeast Asia’s AI boom.

All of this underscores the long-term costs we pay for the convenience of tech.

Samreen Ahmad, journalist

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Top Stories

1️⃣ Zepto’s IPO puts India’s quick commerce model to the test

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