India’s quick commerce sector is about to get its third listed player. Quick commerce company Zepto is preparing to launch its ₹11,000 crore initial public offering in July and may soon file an updated draft red herring prospectus, according to multiple media reports. The company is reportedly aiming to complete its stock market listing before the end of July. Sources tracking the process told NDTV Profit that the updated DRHP filing with SEBI is expected as early as next week, after which investor roadshows will begin in earnest with the clock ticking toward what would be one of the most significant consumer internet IPOs of FY27.
The Bengaluru-based business, which recently acquired SEBI approval for its initial public offering, is now planned to submit its Updated Draft Red Herring Prospectus to the market regulator. In December 2025, the business filed its IPO papers via the confidential pre-filing process. If the listing timetable is met, Zepto will join its quick commerce rivals Eternal, which owns Blinkit, and Swiggy’s Instamart on Indian stock exchanges, completing a trio of listed businesses in one of the country’s fastest expanding consumer categories.
“Zepto To File Updated DRHP Next Week, Kickstart Investor Roadshows With July IPO Aim — Sources tell NDTV Profit that Zepto plans to file its updated draft red herring prospectus with SEBI next week ahead of a targeted July listing.”~NDTV Profit
The IPO Structure: ₹11,000 Crore, Fresh Issue Plus OFS, Valuation Under Review:
The IPO is projected to collect ₹11,000 to ₹12,000 crore through a fresh issue and an offer for sale. The fresh issue component will inject new cash directly into the company, with funds likely to be used for network expansion, technical infrastructure, and the further expansion of Zepto’s dark store operations across India’s tier-1 and tier-2 cities.
The OFS segment will allow existing early-stage investors to partially exit their shares through the public market, allowing Zepto’s backers to book returns while still having an important interest in the company after the listing. To a certain extent, the company has raised about $1.8 billion, with the most recent round being a $450 million Series H led by CalPERS (the California Public Employees’ Retirement System) in October 2025, valued at $7 billion.
However, Zepto’s IPO valuation is currently under review with a potential reduction of 15 to 20% to approximately $5.6 to $5.95 billion, reflecting investor feedback and market conditions. That discount to the last private round valuation is consistent with the broader pattern of new-age companies pricing their public issues below their most recent funding round to ensure strong institutional subscription and healthy post-listing performance.
The IPO is expected to include a mix of fresh issue shares and an offer for sale by existing investors. Reports said Zepto is in discussions with investment bankers and regulators as it finalises the structure and timeline of the public issue.
“Quick commerce platform Zepto is planning to launch its Rs 11,000-crore IPO in July. The company, which received SEBI’s observation letter on May 8, 2026, is expected to file its Updated DRHP soon. Targeting a listing before July 31.”~PTI News
Zepto’s Journey: From Stanford Dropouts To A Stock Market Debut:
Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto has emerged as one of India’s fastest-growing quick commerce players amid rising competition in the 10-minute delivery space. The company was founded in 2021 making it just four years old at the time of its planned IPO which would make it one of the youngest startups to debut on Indian exchanges.
As of early 2026, Zepto has over 1,100 dark stores and does gross annual sales of around ₹26,000 crore. The dark store model where small-format warehouses placed close to residential areas enable sub-15-minute delivery has become the defining operational innovation of India’s quick commerce sector, and Zepto has built one of the densest such networks in the country.
The company holds approximately 29 to 30% market share in India’s quick commerce segment competing closely with Blinkit and Swiggy Instamart and has been growing its advertising revenue rapidly. Ad revenue has crossed ₹1,000 crore on an annualised basis, providing a high-margin revenue stream that is increasingly important as the company targets profitability.
“Zepto to file Updated DRHP with SEBI next week as it targets a July 2026 IPO listing. The ₹11,000-12,000 crore issue will include a fresh issue and OFS. Aadit Palicha and Kaivalya Vohra founded the company in 2021 — making it one of the youngest startups to attempt an Indian stock market listing.”~Inc42
CCI Probe, Valuation Debate, And What Investors Will Be Watching:
Listing does not come without problems. Zepto is under investigation by the CCI for predatory pricing and anti-competitive discounting practices in quick commerce, an issue that will need to be fully disclosed in the public DRHP and will most likely be prominently featured in the risk factors section that institutional investors review before committing to the book.
The value issue has also been an ongoing subject. Earlier this year, unlisted shares traded at highs of ₹52 to ₹55 a share in the grey market. However, they have subsequently corrected to ₹42 to ₹43, a 30% pullback that market participants attribute to the recalibration of expectations around IPO pricing more than business decline. The block transaction guidance from Goldman Sachs, Morgan Stanley, and Motilal Oswal, which recommended a 15 to 20% discount to the previous private round, flowed into unlisted market pricing and established a more realistic floor.
For investors watching the roadshows closely, the key metrics will be the pace of EBITDA improvement, the trajectory of dark store-level profitability, and the timeline toward consolidated break-even. The updated filing is expected to include revised financials and details related to the issue size, shareholding structure, and business performance. With a July 31 target on the calendar, Zepto’s management has a narrow but achievable window and how convincingly they make the case on the roadshow circuit will likely determine whether India’s quick commerce IPO boom adds a third name to the listed market before this financial year is done.
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