Zepto IPO Update: 10-minute delivery company Zepto in mounting crisis
Suspense Crime, Digital Desk : The company, gearing up for its IPO, has put down various risk factors in its draft documents. The most significant question to consider is – is the 10-minute delivery company still under considerable financial strain?
Zepto, the country’s leading quick-commerce platform, has divulged multiple critical aspects of its business model in the updated DRHP it has filed in anticipation of its upcoming IPO. The company has highlighted that it has continuously incurred losses since its inception and might continue to do so in the future, as it requires heavy investments to onboard new customers, fortify its technology, launch new services, and broaden its network of dark stores. Therefore, revenue is not assured to grow at the current rate in the future.
Losses up to Rs 5,900 cr in FY26
As per the filings, Zepto's net loss had widened significantly in FY2025-26 to more than 5,905 crore compared to just around 4,700 crore in the previous fiscal year. Meanwhile, its revenue figures were much better in FY26. The revenue figures were up to 22,623 crore in FY26 from roughly half that in the previous year. Although its loss shrunk on a quarter-on-quarter basis at the end of March 2026, it was still more than 1,500 crore.
ED probe poses significant risk
In the draft documents, Zepto stated that it was summoned in April 2026 by the Enforcement Directorate(ED) to furnish documents relating to its foreign investments, shareholding structure and business model by its co-founders, Adit Palicha and Kaivalya Vohra. Though the company has submitted its reply to the ED, the possibility of future investigation or litigation by the regulatory agency can not be ruled out.
The company also engaged in a dark pattern case.
Zepto has also been accused of various violations of consumer protection laws. The company was also put on trial and fined 7 lakh in April this year for adopting certain digital practices, widely termed as "dark patterns", aimed at deceiving the customers. Zepto had contested this order and has been granted interim relief at present.
The entire business rests on the network of dark stores.
The company admits that its entire business is dependent on dark stores, and any kind of impediment in the further effective expansion of these stores could be catastrophic for the business as well as profits. As of today, the dark store count for Zepto has already ballooned to 1,139 from just a year ago, showing substantial growth.
What is the take away for the investors?
Zepto has made clear, prior to the IPO, that it is growing at a significant pace but not without considerable risks in terms of losses, regulatory issues, and growing competition. Whether it would find its path towards profitability in the future and by when, only time would tell.
