Zepto IPO: 10-minute deliveries, but losses touch Rs 6,000 cr – Here’s what the DRHP reveals

Zepto, the Indian quick commerce unicorn, has filed an updated Draft Red Herring Prospectus with SEBI for a proposed Initial Public Offering of up to Rs 8,010 crore in fresh shares, alongside a substantial Offer for Sale. The filing, made on June 8, 2026, reveals a stark financial dichotomy: a doubling of revenue to Rs 22,623.58 crore in FY26, yet net losses widened to Rs 5,905.19 crore, underscoring the high-burn nature of the 10-minute delivery model even as the company shows improvements in Unit Economics. Adding a layer of complexity, the DRHP also disclosed an ongoing Foreign Exchange Management Act (FEMA) compliance matter involving its founders, who were summoned by the Directorate of Enforcement (ED). The IPO arrives as India's quick commerce market, projected to hit $60-83 billion by 2030, intensifies into a ruthless battle for market share and, crucially, profitability. Zepto, now the second-largest player by order volume, is locked in fierce competition with established rivals like Blinkit and Swiggy Instamart, while e-commerce behemoths Flipkart Minutes and Amazon Now aggressively expand their Dark Store networks. This 'land-grab' phase, characterized by heavy Capital Expenditure on infrastructure and soaring marketing costs for user acquisition, is forcing a strategic pivot towards sustainable business models, with a growing emphasis on Retail Media and maximizing Average Order Value (AOV) to offset operational intensity. As Zepto navigates the regulatory landscape and investor scrutiny, the market will closely watch for clarity on the FEMA issue and its path to sustained profitability beyond improved Adjusted EBITDA per order. The success of this IPO, potentially including a Pre-IPO Placement, will serve as a bellwether for investor appetite towards high-growth, loss-making Indian tech startups in a market increasingly prioritizing robust Unit Economics and governance. Its ability to maintain Annual Transacting Users amidst rising customer acquisition costs and fierce competition will be critical in the coming quarters.