Zepto

Zepto IPO

IPO Price Range: Not Announced Yet

IPO Status

Upcoming

Listing Exchange

NSE

Objectives of IPO

  1. Expansion Plans: With its strong presence in metro cities, Zepto plans to double its operations by increasing their dark stores to 700 and expand in Tier 2 and Tier 3 cities like Vizag, Chandigarh, Nasik, etc.
  2. Increase Product Categories: Zepto also plans to broaden its product categories by adding high-demand products like consumer electronics, apparel, beauty products and general merchandise.
  3. Expand Zepto Cafe: Launched in 2022, Zepto Cafe already has over 100 cafes opening each month and 30,000 orders daily. Their current annualized revenue with Zepto Cafe stands at ₹160 crore and is projected to grow to ₹1000 crore in 2026.

Financial Performance of Zepto

*Value in ₹ crore
*Value in ₹ crore
DetailsFY23FY24
Total Revenue₹2,077₹4,498
Total Profit₹-1,272₹-1,248

Strengths and Risks

Strengths

Strengths

  • Zepto entered the market after Swiggy’s Instamart, but it has now quickly outpaced it and is the second-largest player in the quick-commerce market. It now owns a 29% market share.

  • They achieved 116.6% growth year-on-year, increasing its revenue from ₹2,077 crore in FY 23 to ₹ 4,498 crore in FY 24. The company also rapidly plans to expand to 40-50 cities.

  • The company has expanded their dark stores to 650 in the financial year 2024 from just 70 in the financial year 2022.

  • The company shows a striking 50% growth rate every month with their contribution margin improving from INR -8 per order to -0.5 per order by April 2024.

  • The company also managed to significantly reduce its EBIDTA margin loss from -55.95% in FY23 to -23.81% FY 24.

  • Zepto now spends ₹1.29 to earn ₹1, a 22% reduction from ₹1.65 in FY23.

Risks

Risks

  • Despite increase in revenue, Zepto remains unprofitable with a net loss of ₹1,248 crores in FY 2024.

  • Zepto has high operational costs from maintaining its dark stores, warehouses, delivery partners and technology stack. Their expenses alone in FY24 was ₹5,747 crores.

  • The company faces tough competition from other quick commerce brands like Blinkit and Swiggy, which means to thrive the brand needs to constantly innovate and evolve.

  • Proposed labour law charges would result in an increase in operational costs.

How to Apply for Zepto IPO on INDmoney

  1. Download the INDmoney app and complete your KYC.
  2. Go to INDstocks → IPO, or just search “IPO”.
  3. Tap on Zepto IPO from the list of live IPOs.
  4. View key details like price band, lot size, and dates.
  5. Tap Apply Now and choose your number of lots.
  6. Use INDpay UPI for instant mandate tracking.
  7. Your funds will be blocked until the share allotment is finalized.

Listed Competitors of Zepto

Swiggy’s Instamart

Swiggy’s Instamart

Swiggy Instamart is a vertical of Swiggy, it provides on-demand everyday essentials and groceries within 15 to 30 minutes.

Zomato’s Blinkit

Zomato’s Blinkit

Acquired by Zomato, Blinkit is a quick-commerce company that delivers household essentials to customers within 10 minutes by connecting them with partner stores.

Unlisted Competitors of Zepto

Big Basket

Big Basket

Big Basket is an online delivery service that delivers food items, staples, and daily produce to customers. The delivery timeline varies from 90 minutes to 2 hours.

Flipkart Minutes

Flipkart Minutes

Flipkart Minutes is a quick delivery service by Flipkart. It delivers groceries, electronics, smartphones, etc to customers within 8 to 10 minutes.

Amazon Fresh

Amazon Fresh

A subsidiary of Amazon, Amazon Fresh delivers groceries and household items in up to 2 hours to its Prime members.

About Zepto

Zepto (KiranaKart Technologies Private Limited) is a quick commerce platform founded by two Stanford dropouts, Aadit Palicha and Kaivalya Vohra in 2021. With their promise of ‘Groceries delivered in 10 minutes’, Zepto has quickly captured customers' attention and investors' interest.

The brand operates by locating dark stores and micro warehouses in high-demand localities to deliver products speedily. Zepto delivers products in over 25000 product categories on its app. The company uses extensive technology based on data analytics that helps them anticipate their demand in real-time to manage their inventory.

Zepto is currently valued at $5 billion and it aims to raise around $450 to $500 million. The company has increased its sales year-on-year, which brings its gross merchandise value (GMV), meaning the total amount of products it sold in a year to over $1.5 billion as of July 2024. Even though Zepto was not first in the quick-commerce space, it rapidly overtook giants like Swiggy’s Instamart and Zomato’s Blinkit in terms of revenue by the end of 2024.

Products & Services

Zepto

Zepto

‘Zepto’ is the company’s core business model which is a quick commerce delivery service that offers groceries, dairy products, fresh produce and other household essentials.

Zepto Cafe

Zepto Cafe

‘Zepto Cafe’ is a separate app and a division of Zepto that focuses on ready to eat food, beverages and snacks. With their 10-minute delivery Zepto Cafe ensures quick access to snacks and drinks.

ProductQuick Commerce
Known ForGrocery products, dairy, fresh produce,household essentials
Top ProductsGroceries, Fruits & vegetables, Personal care & electronic items

Zepto IPO Valuation

Zepto is valued at $5 billion. The company has raised over $1.95 billion in 10 funding rounds from 64 investors. These investors include some popular institutional investors like Motilal Oswal Private Wealth, General Catalyst, Lightspeed Ventures Partners, etc.

Shareholding Pattern

ShareholderShares % 
Nexus Venture Partners18.60
Glade Brook Capital10.30
StepStone Group9.80
Others61.30

Frequently Asked Questions of Zepto IPO

Can we invest in Zepto IPO?

Yes, once Zepto IPO opens, you can invest in the shares of the company.

What would be the listing gains on the Zepto IPO?

The potential listing gains on the Zepto IPO will depend on various market factors and cannot be predicted with certainty.

What is 'pre-apply' for Zepto IPO?

'Pre-apply' for Zepto IPO indicates your interest in the IPO before it opens for subscription. This ensures quick application when the IPO goes live.

Is Zepto listed in the stock market?

No, Zepto is not yet listed in the stock market. However it is expected to launch its IPO which will allow the public to invest in its shares.

Does Zepto have an IPO?

Zepto is planning to launch its IPO and raise anywhere between $450 to $500 million.

Is Zepto making profit?

No, Zepto is still not profitable. Ever since it launched, the company has been operating with a negative cash flow. However, the founder of Zepto, Aadit Palicha is hopeful that the company is on track to be profitable by FY 2026, since 75% of their stores are already making more money than their expenses, excluding taxes.

Who funded Zepto?

Zepto has raised funding from a total of 64 investors which includes 52 institutional investors and 12 angel investors. Some popular investors include Nexus Venture Partners, Glade Brook Capital, StepStone Group and now plans to go public.

How can I apply for the Zepto IPO?

The date for Zepto’s IPO is yet to be determined. You can invest in the IPO through the INDmoney app. Once the IPO details are out, you will find it under the ‘Explore IPOs’ section.

How many cities is Zepto present in?

Zepto is operational in 35 cities as of December 2024. These include Tier 1 cities like Delhi, Bengaluru, Mumbai, Hyderabad, etc. and they are expanding to Tier 2 and Tier 3 cities like Nasik, Chandigarh, Vizag and Ahmedabad.

What is the total funding raised by Zepto?

The four-year old start-up has raised a total funding of $1.95 billion over 10 rounds, with its latest round raising $350 million and the largest round raising $665 million in FY24.

Where is the Zepto IPO getting listed?

Zepto IPO shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Is Zepto a Unicorn Company?

Yes, Zepto is a unicorn company. It gained its ‘unicorn’ title in its Series E funding where it was valued at $1.4 billion.