Zepto Targets $1 Billion IPO Amid Rising Losses and Regulatory Scrutiny

Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto has rapidly scaled to compete with Zomato’s Blinkit and Swiggy’s Instamart. The company’s latest financials show 640 million orders processed in fiscal 2026, supported by a network of 1,139 stores. Yet, this aggressive growth carries a steep price tag: the firm reported a net loss of ₹59.1 billion, or roughly $617 million, widening from the previous year’s deficit. To sustain operations, the company is mirroring the Amazon playbook, shifting focus toward its high-margin advertising arm, which grew 151% year-over-year.

Investors are now weighing these metrics against a valuation question that remains unresolved. Although the company reached a $7 billion valuation during its last private round in October, some institutional observers are signaling skepticism, suggesting market pricing may fall below that peak. Complicating the narrative, the founders recently faced summonses from the Enforcement Directorate regarding foreign investment compliance. While the company maintains that no further communication has occurred since their appearance, the regulatory cloud adds a layer of risk for potential public-market investors as Zepto prepares its debut following a strategic relocation of its headquarters from Singapore to India.