Zepto’s IPO Ambitions and the Competitive Landscape of Quick Commerce in India

India’s quick commerce segment continues to evolve rapidly, driven by aggressive expansion and sustained investor interest. 

Zepto is now expected to take steps towards a public listing, placing it alongside established players such as Zomato-owned Blinkit and Swiggy’s Instamart. 

This article reviews how Zepto compares with its peers across funding, valuations, scale, and financial performance.

Zepto’s IPO Plans and Fundraising Activity

Zepto is likely to file a confidential draft red herring prospectus in the near future, as per the Zee Business news report.

The proposed initial public offering is estimated at around ₹11,000 crore and is expected to include both a fresh issue and an offer for sale. 

This move comes at a time when the quick commerce sector has seen significant capital inflows.

Cash Position and Valuations of Key Players

Recent fundraising rounds have materially strengthened balance sheets across the sector. Zomato currently holds an estimated cash balance of ₹18,400 crore and is valued at approximately ₹2.7 lakh crore.

Swiggy has cash reserves of nearly ₹17,000 crore, with a valuation close to ₹1 lakh crore. Zepto’s cash position is estimated at ₹7,900 crore, while its valuation stands at around ₹62,930 crore.

Store Network and Expansion Strategy

Store expansion remains a central focus for quick commerce companies. Blinkit operates about 1,816 dark stores, giving it the widest network. 

Swiggy Instamart has approximately 1,102 stores, while Zepto’s dark store count is estimated to be between 750 and 1,000. Recent capital raises are expected to support further network expansion across all players, the news report added.

Profitability and Financial Performance

Despite rapid growth, the sector continues to face profitability challenges. Zepto has reported losses of around ₹3,360 crore, while Swiggy’s losses are estimated at ₹3,000 crore. 

Zomato reported a profit of ₹527 crore, with Blinkit recently achieving EBITDA-level profitability. Instamart and Zepto, however, remain EBITDA-negative.

Market Share Dynamics

Blinkit currently holds close to 49% of the quick commerce market. Zepto and Swiggy Instamart each account for roughly 29% market share, highlighting a competitive landscape with no single player dominating entirely.

Read More: Modern Diagnostic IPO Allotment Status.

Conclusion

The anticipated Zepto IPO reflects growing maturity within India’s quick commerce sector. While funding activity has strengthened cash positions and supported expansion, ongoing losses and valuation expectations remain key considerations. Investor response to future public issues is likely to depend on financial discipline, growth visibility, and pricing at the time of listing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.