Zepto IPO

Zepto, a leading quick-commerce platform, is preparing to file its draft papers for an initial public offering (IPO) by March or April 2025. The company has already secured approvals to shift its base from Singapore to India ahead of the listing. A key board meeting will finalise the appointment of bankers, independent directors, and the IPO size, while the opening date will be announced later.

Zepto has experienced rapid growth, reporting a 120% increase in operating revenue to ₹4,454 crore in FY24. The company’s valuation currently stands at $5 billion, and in November 2024, it raised $350 million from Indian high-net-worth individuals (HNIs), family offices, and financial institutions.

Zepto operates under a B2B model, acting as a technology intermediary between sellers, dark store operators, and delivery partners. The company is set to expand into over 50 cities by next quarter, growing from around two dozen currently. Additionally, Zepto plans to launch a separate app for Zepto Café, which specialises in quick food and snack deliveries.

Industry Outlook

1. The Indian online grocery market was valued at USD 11.4 billion in 2024 and is expected to grow significantly in the coming years. The market is projected to reach USD 96.3 billion by 2033, with a compound annual growth rate (CAGR) of 25.38% from 2025 to 2033. Several factors are driving this expansion, including increased internet access and smartphone adoption, rising urbanisation, changing consumer lifestyles, and the impact of the COVID-19 pandemic.
2. The Indian e-commerce market is expected to grow from US$ 123 billion in 2024 to US$ 292.3 billion by 2028, creating immense opportunities for quick-commerce players like Zepto to expand their customer base and product offerings.

Objectives of Zepto IPO

1. Zepto aims to strengthen its presence in metro cities while expanding into Tier 2 and Tier 3 locations such as Vizag, Chandigarh, and Nasik. The company plans to increase the number of dark stores to 700, enhancing its delivery network and operational reach.
2. To meet growing consumer demand, Zepto intends to expand its product offerings by introducing new categories, including consumer electronics, apparel, beauty products, and general merchandise.
3. Since its launch in 2022, Zepto Café has seen rapid growth, with over 100 new outlets opening each month and processing 30,000 orders daily. The annual revenue from Zepto Café currently stands at ₹160 crore and is projected to reach ₹1,000 crore by 2026, reflecting the company’s strong expansion strategy.

KiranaKart Technologies Private Limited

Zepto, operated by KiranaKart Technologies Private Limited, is a quick-commerce platform founded in 2021 by Aadit Palicha and Kaivalya Vohra. Built on the promise of delivering groceries in just 10 minutes, Zepto has transformed rapid commerce in India by leveraging advanced technology and strategically placed micro-warehouses. The platform offers over 45,000 products, including fresh groceries, electronics, beauty essentials, apparel, and toys, serving customers across 50+ cities.

Zepto’s success is driven by its data-driven approach, allowing real-time demand anticipation and efficient inventory management. By establishing dark stores in high-demand areas, the company ensures swift delivery, surpassing competitors like Swiggy’s Instamart and Zomato’s Blinkit in revenue by the end of 2024. Zepto Café further enhances convenience with a curated selection of over 200 fresh food items.

As of July 2024, Zepto has reached a valuation of $5 billion and is in the process of raising $450–$500 million. The company has achieved impressive sales growth, with its gross merchandise value (GMV) exceeding $1.5 billion in a year. Despite not being the first in the quick-commerce sector, Zepto has rapidly gained market dominance through technological innovation and operational efficiency. With a focus on speed, reliability, and customer satisfaction, Zepto continues to redefine the shopping experience in India’s evolving e-commerce landscape.

How To Check the Allotment Status of Zepto IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How To Apply for the Zepto IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Zepto IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Financial Performance of KiranaKart Technologies Private Limited

Know before investing

Strengths

1. Zepto has rapidly grown in the quick-commerce market, surpassing Swiggy’s Instamart to become the second-largest player with a 29% market share.

2. The company recorded a remarkable 116.6% year-on-year growth, with revenue rising from ₹2,077 crore in FY23 to ₹4,498 crore in FY24.

3. Zepto has significantly scaled its dark store network, increasing from 70 stores in FY22 to 650 stores in FY24, strengthening its delivery infrastructure.

4. The company maintains a robust 50% monthly growth rate, with its contribution margin improving from ₹-8 per order to ₹-0.5 per order as of April 2024.

Risks

1. Despite strong revenue growth, Zepto remains unprofitable, reporting a net loss of ₹1,248 crore in FY24.

2. High operational expenses, including costs related to dark stores, warehouses, delivery personnel, and technology, reached ₹5,747 crore in FY24.

3. The quick-commerce sector is highly competitive, with Zepto facing pressure from established players like Blinkit and Swiggy, requiring continuous innovation to maintain its market position.

4. Potential changes in labour laws could lead to higher operational costs, impacting the company’s profitability.