Zepto’s 10-Minute Delivery Story and Its Upcoming IPO

Imagine ordering vegetables, milk, bread, or even a chocolate bar—and it arrives at your doorstep in just 10 minutes. Sounds like magic? In many Indian cities, it’s already a reality. The quick commerce industry is booming, and Zepto is one of the biggest names driving this revolution.

In just a few years, Zepto has become a household name for fast grocery delivery. Now, all eyes are on its upcoming IPO, expected to happen in 2025. Investors, customers, and market watchers are all curious to see how this young company will perform in the stock market.

Who is Zepto?

Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra, two Stanford dropouts who returned to India during the COVID-19 pandemic. They spotted a big opportunity: people wanted daily groceries delivered instantly. Their idea? Deliver in 10 minutes. And it worked.

Today, Zepto delivers groceries, daily essentials, snacks, ready-to-eat meals, and even electronics across major Indian cities. The brand has become popular among busy urban families, working professionals, and college students.

IPO Buzz: Why Everyone is Talking About Zepto Going Public
Zepto is preparing for its Initial Public Offering (IPO), likely in late 2025. The buzz is strong because:

· Zepto grew faster than Blinkit and Instamart in FY24.

· It’s among the top 3 quick commerce brands in India.

· The company recently raised over $1.3 billion in fresh funding from investors.

· It’s outperforming rivals in revenue.

In Palicha’s own words:

“That’s our ambition... of course, capital markets may change, but for now we’re optimistic if the business continues to perform as well, that we will go public in calendar 2025.”

Business Model: Speed + Tech + Local Stores

The 10-Minute Promise
Zepto uses a dark store model—small, tech-enabled warehouses located in neighborhoods. These aren’t regular shops. They're designed only for delivery, helping riders pick up items fast and reach you quicker.

Tech Power
Zepto’s backend runs on AI and automation, helping to:

Assign the nearest delivery partner
Track the fastest routes
Reduce delays and errors

This smart system allows them to deliver faster than traditional grocery apps.

Financial Performance: Revenue Soars, Losses Drop

Zepto saw phenomenal financial growth in FY24:

Metric	FY23	FY24	Change
Revenue	₹2,026 Cr	₹4,455 Cr	↑ 120%
Net Loss	₹1,271.84 Cr	₹1,248.64 Cr	↓ 2%
Total Expenses	₹3,350 Cr	₹5,747 Cr	↑ 72%
PAT as % of Revenue	-63%	-28%	Strong improvement

Despite rising expenses, Zepto reduced its loss-to-revenue ratio from 63% to 28%, showing strong operational efficiency.

CEO Aadit Palicha said on LinkedIn:

“Even with 120 percent growth, our absolute losses came down year-on-year with PAT as a percentage of revenue improving... We expect to continue this growth momentum with a clear path to profitability.”

Where Zepto Spends Money: FY24 Breakdown

🛒 Purchase of Goods: ₹3,449.83 Cr (↑ 77%)
👩‍💼 Employee Costs: ₹426.30 Cr (↑ 62%)
🏬 Warehousing: ₹492.65 Cr (↑ 43%)
📢 Advertising & Promotions: ₹303.55 Cr (↑ 41%)

The biggest chunk went into purchasing goods, showing Zepto’s massive scale in inventory management.

Competitors: Zepto Beats Blinkit and Instamart in Revenue

Zepto isn’t alone in the race. It competes with:

Company	FY24 Revenue
Zepto	₹4,455 Cr ✅
Blinkit (by Zomato)	₹2,301 Cr
Swiggy Instamart	₹1,100 Cr

Zepto has outperformed both in revenue, even though Blinkit leads in market visibility. Other players like Flipkart Minutes and BigBasket Now are also trying to catch up, and even Amazon is reportedly exploring the space.

Funding History: Over $1.3 Billion Raised in 2024 Alone

In 2024, Zepto secured over $1.3 billion in three major rounds:

💰 June: $665 million
💰 August: $340 million
💰 November: $350 million

The latest round was led by Motilal Oswal Private Wealth and top Indian HNIs, aimed at increasing domestic ownership before the IPO.

Opportunities Ahead for Zepto

Expanding to Tier 2 and Tier 3 cities
Introducing more product categories (like ready meals, coffee, electronics)
Building subscription models for loyal users
Targeting profitability within the next year

Should You Watch the Zepto IPO?

Yes—whether you’re a customer or a stock market beginner, Zepto’s IPO is worth tracking.

It’s rare for a startup to grow revenues by 120% and still reduce losses. With a strong tech foundation, loyal urban user base, and smart spending, Zepto is shaping up to be one of India’s most promising IPOs in 2025.

If you're planning to invest, keep an eye on Zepto’s profitability roadmap, upcoming funding updates, and regulatory filings in 2025.