Sebi Approves Zepto IPO, Issue Set at ₹8,000‑9,000 Crore After 129% Revenue Jump

*TL;DR: SEBI has cleared Zepto’s IPO, targeting a ₹8,000‑9,000 crore issue; the quick‑commerce firm posted a 129% rise in FY25 revenue but saw net losses expand 177%.*

Context Zepto, the four‑year‑old quick‑commerce startup, received formal approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering. The company must now file an updated draft red herring prospectus (DRHP) within six to eight weeks, moving it toward a market debut that could make it one of India’s youngest venture‑backed listings.

Key Facts - The IPO size is expected to fall between ₹8,000 crore and ₹9,000 crore, lower than the ₹11,000‑12,000 crore range hinted at in a December confidential filing. Final pricing and structure remain under discussion. - Zepto’s FY25 total income climbed 129% to ₹9,668.8 crore, up from ₹4,223.9 crore a year earlier. - Net loss widened 177% to ₹3,367.3 crore, compared with a ₹1,214.7 crore loss in FY24, reflecting heavy spending on expansion and customer acquisition. - The firm holds cash of roughly ₹6,000‑7,000 crore, providing a buffer despite the widening loss margin. - Investment banks Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are advising the issue. - Zepto recently re‑registered as Zepto Limited and shifted its domicile back to India from Singapore, aligning its corporate structure for the listing.

What It Means The approval signals confidence from regulators that Zepto meets listing standards, but the reduced issue size suggests a more cautious capital raise amid a muted primary market. Strong top‑line growth shows demand for rapid‑delivery services, yet the expanding loss underscores the sector’s high cash burn as firms chase market share. Investors will weigh the company’s cash runway against the need for continued funding to sustain expansion.

Looking Ahead Watch for the DRHP filing, final pricing decisions and how Zepto’s loss trajectory evolves as it prepares for a public debut.