Synopsis
Quick commerce firm Zepto is engaging institutional investors for its planned June-July IPO, aiming to raise capital amid intensifying competition. The company targets full-year profitability by FY2028-29, having reduced its quarterly cash burn significantly. Zepto is focusing on scaling order volumes without expanding its dark store network, differentiating itself by targeting value-conscious customers.The move comes as the Bengaluru-based company looks to raise capital in the public markets amid intensifying competition in the 10-minute delivery segment, with a fresh set of rivals including Amazon and Flipkart doubling down.
According to people who attended investor meetings with Zepto’s senior management, the five-year-old company is targeting full-year post-tax profitability by FY2028-29, while continuing to grow at 25-30% quarter-on-quarter.
“Across the quick commerce space, growth does seem to be cooling off a bit, at least for the bigger players. But that’s not entirely surprising. It lines up with what public market investors want to see right now: a clearer focus on profitability and stronger bottom-line performance,” said one person, who did not wish to be identified.
That person added that Zepto reduced its quarterly cash burn to Rs 850-900 crore in the January-March period, down from roughly Rs 1,200-1,300 crore a few quarters ago — driven by lower per-order costs and a pullback in network expansion, with its dark store count holding at around 1,100.
“The company has also outlined a path to profitability by FY29, with breakeven expected in FY28,” said another person familiar with the presentations.
In the quarter ended March 2026, Zepto reported an Ebitda loss of around Rs 55-60 crore, down from roughly Rs 100-110 crore in the July-September period. Ebitda measures earnings before the impact of financing costs, taxes, and certain non-cash accounting charges.
Zepto has confidentially filed draft papers for a Rs 11,000–12,000 crore IPO, largely comprising a primary issuance. The final size and pricing, however, remain undecided as the company awaits clearance from the country’s stock market regulator Sebi.
Zepto’s push toward profitability mirrors moves by rivals Blinkit and Swiggy’s Instamart. In October-December 2025, Eternal-owned Blinkit reported breakeven at an adjusted Ebitda level, while flagging competitive intensity as a drag on margins. Swiggy, during the same period, said it would avoid “irrational” tactics such as zero delivery fees and handling charges. Instamart has guided for contribution margin breakeven in the ongoing April-June quarter.
Zepto did not respond to a detailed set of queries sent by ET.
