Zepto Eyes April Deadline to File Updated DRHP Amid IPO Valuation Scrutiny

Quick commerce startup Zepto is targeting a late April deadline to file its updated Draft Red Herring Prospectus (DRHP) for its upcoming IPO, even as investors reassess the company’s valuation ahead of the public listing.

The company had confidentially filed IPO documents with the market regulator Securities and Exchange Board of India (SEBI) in December 2025 and is now preparing to submit updated disclosures once the filing receives regulatory clearance.

If completed, the listing could become one of the fastest journeys from startup launch to public markets in India’s consumer internet ecosystem.

Zepto IPO: Updated DRHP Expected by April

According to people familiar with the matter, Zepto expects its confidential filing to be cleared within the next few weeks. After this, the company plans to file an updated DRHP with SEBI before the end of April.

The updated DRHP will publicly disclose key information about the IPO, including:

• Financial performance
• Risk factors
• Operational metrics
• Details of the share sale

Such filings are typically required after companies use the confidential IPO route to test market sentiment before officially launching the issue.

Investor Outreach Begins Ahead of Zepto IPO

As part of its IPO preparations, Zepto has reportedly started preliminary discussions with domestic mutual funds to gauge institutional investor interest.

Domestic investors often play a crucial role in large IPOs by anchoring a significant portion of the Qualified Institutional Buyer (QIB) quota.

However, discussions with global institutional investors have not yet started. These interactions are expected to begin after the updated DRHP is filed and regulatory review progresses.

IPO Valuation May Be Lower Than Last Funding Round

One of the key talking points around the Zepto IPO is its potential valuation.

The startup was last valued at around $7 billion during a $450 million funding round in October 2025.

However, current discussions suggest the IPO valuation could be 15–20% lower, implying a public market valuation in the range of $5.6 billion to $5.95 billion.

The IPO itself is expected to raise around $1.3 billion, although the final size could change depending on market conditions and investor demand.

Rising Competition in the Quick Commerce Market

Investor scrutiny around Zepto’s valuation is also linked to intensifying competition in India’s quick commerce sector.

Key competitors include:

• Blinkit
• Swiggy’s Instamart
• Newer entries from Amazon and Flipkart

Investors are closely evaluating unit economics, average order values, delivery costs, and customer retention metrics before deciding on the right valuation multiple for the company.

Financial Performance

Zepto has grown rapidly as it scales its quick commerce operations across Indian cities.

• FY2025 revenue: ₹9,669 crore
• Revenue growth: 129% year-on-year
• Net loss: ₹3,367 crore

Despite strong revenue growth, losses have widened significantly as the company continues to invest heavily in expanding its dark store network and delivery infrastructure.

About Zepto

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto operates in the quick commerce segment, delivering groceries and everyday essentials within minutes using a network of dark stores.

The company has rapidly expanded across major Indian cities and offers tens of thousands of products through its platform.

Source: https://www.livemint.com/companies/news/zepto-eyes-april-deadline-for-updated-drhp-as-ipo-valuations-face-investor-scrutiny-11772955714200.html