Zepto Gets SEBI Nod For $1.2 Bn IPO, Updated DRHP Due In 6-8 Weeks
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Startup Spotlight India
- May 10, 2026
Zepto has received approval from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering valued at around ₹11,000 crore to ₹12,000 crore (approximately $1.2 billion), marking a major regulatory milestone for one of India’s most anticipated tech listings. The Bengaluru-based company is now expected to submit its updated Draft Red Herring Prospectus (DRHP) within the next six to eight weeks ahead of its stock market debut.
SEBI clears path for IPO
As per the latest update on SEBI’s website, the regulator issued an observation letter to the quick commerce company earlier today. In SEBI terminology, the issuance of an observation letter effectively means approval for the company to move ahead with its IPO plans.
IPO structure and timeline
Zepto had confidentially filed its DRHP in December 2025 for a public issue estimated between ₹11,000 crore and ₹12,000 crore. The IPO is expected to primarily consist of a fresh issue of shares, although the final issue size and pricing are yet to be decided.
Last year in December, the startup had secured shareholder approval to raise up to ₹11,000 crore through a fresh equity issuance as part of the public offering.
About Zepto and its founders
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly emerged as one of the leading companies in India’s fast-growing quick commerce market.
The company competes with Blinkit, owned by Eternal, as well as Swiggy Instamart. It also faces competition from newer entrants such as Amazon Now and Flipkart Minutes.
Quick commerce sector sees intense competition
SEBI’s approval comes at a time when India’s quick commerce sector has become one of the most competitive segments in the country’s consumer internet industry. What initially started as a 10-minute grocery delivery experiment has now evolved into a mainstream platform for groceries, daily essentials, electronics, and even apparel.
Confidential filing route
Zepto chose the confidential pre-filing route introduced by SEBI in 2022, which enables companies to engage with the regulator without publicly disclosing sensitive business and financial information until they are prepared to launch the issue.
Several new-age startups have adopted this route to maintain flexibility around IPO timing and pricing amid changing market conditions.
IPO to support expansion plans
The company’s listing plans come amid a broader wave of Indian tech and consumer internet startups preparing to access public markets following IPOs by companies such as Swiggy and Ola Electric.
The upcoming IPO is expected to provide partial exits for early investors while also helping Zepto fund expansion of its dark store network, strengthen technology infrastructure, and add new product categories.
Zepto’s growth journey
Founders Aadit Palicha and Kaivalya Vohra, both Stanford dropouts, launched Zepto during the pandemic-driven surge in demand for instant delivery services.
Since then, the startup has raised multiple funding rounds from domestic and global investors while rapidly expanding its dark store operations across major Indian cities to compete with larger rivals.
“In SEBI’s parlance, issuance of an observation letter is a go ahead to proceed with the IPO,” the regulator’s update stated, confirming the next stage in Zepto’s public listing journey.
Frequently Asked Questions
What approval has Zepto received from SEBI?
Zepto has received an observation letter from the Securities and Exchange Board of India (SEBI), which acts as regulatory approval for the company to move forward with its proposed IPO.
How much does Zepto plan to raise through its IPO?
The quick commerce startup is aiming to raise around ₹11,000 crore to ₹12,000 crore, roughly equivalent to $1.2 billion, through its upcoming public issue.
When did Zepto submit its DRHP?
Zepto confidentially submitted its Draft Red Herring Prospectus (DRHP) to SEBI in December 2025. The company is expected to file an updated DRHP within the next six to eight weeks.
Who are the founders of Zepto?
Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, both former Stanford students who built the startup into one of India’s leading quick commerce platforms.
Who does Zepto compete with?
Zepto competes with Blinkit and Swiggy Instamart in the quick commerce market, along with newer players such as Amazon Now and Flipkart Minutes.
Will Zepto’s IPO include fresh shares or an offer for sale?
The IPO is expected to mainly consist of a fresh issue of shares, although the final structure, pricing, and issue size are still under discussion. Shareholders had previously approved a fresh equity raise of up to ₹11,000 crore.
Where is Zepto based?
Zepto is headquartered in Bengaluru and operates across several Indian cities through its network of dark stores that support 10-minute delivery services.
