Indian Startup Zepto Prepares for $1B IPO: Growth and Losses

Indian startup Zepto, operating in the quick-commerce segment, has filed documents for an initial public offering (IPO). The company’s valuation is expected to reach $1 billion, marking a significant milestone for one of Y Combinator’s largest projects outside the U.S.

According to disclosed data, Zepto’s advertising revenue surged by 151% in the last fiscal year, reaching ₹16.4 billion ($171 million). Total operating revenue grew by 104%, amounting to ₹115.5 billion ($2.4 billion). While product delivery remains the primary revenue source, the advertising segment is expanding faster, mirroring Amazon’s strategy of transforming its marketplace into a profitable advertising business.

Despite an increase in orders (640 million in the 2026 fiscal year) and users (48 million active customers), Zepto continues to incur losses. The company’s net loss widened to ₹59.1 billion ($617 million) from ₹47 billion ($492 million) the previous year. In its filings, Zepto acknowledged that it may not achieve profitability in the near term, a common scenario for venture-backed companies going public before turning profitable.

As part of the IPO, Zepto plans to raise up to ₹80.1 billion ($837 million) through the issuance of new shares. Additionally, existing investors, including Nexus Venture Partners and Contrary, will offer up to 113.5 million shares for sale. The final offering size will depend on the proposed price. The company was previously valued at $7 billion, though some investors question whether this valuation will hold in the public market.

Zepto’s founders, Aadit Palicha and Kaivalya Vohra, received inquiries from India’s Enforcement Directorate in April regarding foreign investments and the company’s shareholder structure. Zepto provided the required documents but does not rule out further regulatory scrutiny.