Indian quick commerce startup Zepto files for $1.2 billion IPO amid warnings of bubble in the sector
Zepto is not the only flash commerce startup in India, and competition is heating up both domestically and globally. The country’s online grocery market is expected to be worth approximately $24 billion by 2025, according to Redseer.
Zepto
Indian flash trading startup Zepto has confidentially filed for an initial public offering, according to a public notice published by the company on Sunday.
The company plans to raise 110 billion rupees ($1.22 billion) in new capital. Data from research firm Tracxn showed that Zepto was valued at $7 billion in its last funding round in October.
Zepto told CNBC that it filed the draft prospectus under the confidential means that ensures its files remain private, and declined to disclose further details.
rising competition
Promising delivery in as little as 10 minutes, express commerce has become one of India’s most competitive consumer internet sectors.
E-commerce giant Amazon The company, which has long offered same-day delivery services in India through “Amazon Fresh”, marked an aggressive move into a crowded space with the launch of its 15-minute “Amazon Now” service in June.
The US company, owned by Jeff Bezos, has started flash trading operations in three major cities of India (Mumbai, Delhi and Bengaluru).
Amazon India Country Manager Samir Kumar said on December 1 that it plans to have more than 300 micro fulfillment centers in Bengaluru, Delhi and Mumbai by the end of the year.
“India’s flash trading market currently accounts for 10% of the e-commerce market, but in the medium to long term it could account for 40%-50%,” Karan Taurani, vice president of Indian brokerage firm Elara Capital, told CNBC’s Inside India program last week.
WalmartFlipkart, which it owns, also launched its express commerce service in 2024. Indian food delivery companies Swiggy and Eternal, which own Zomato and Blinkit, were among the first movers in this space.
Taurani said that in the last three to five years, many companies have entered the flash trade market in India and firms have “engaged in a price war” as they pursue a large addressable market.
bubble concerns
The sector continued to attract large amounts of capital. Swiggy earlier this month raised 100 billion rupees from institutional investors to expand the rapid trade fulfillment network, including warehouses close to busy neighbourhoods.
But some industry leaders have warned that the pace of spending may not be sustainable.
Blinkit Chief Executive Albinder Dhindsa reportedly warned of a bubble explosion.
he said Bloomberg He said the flash trading industry relied heavily on “relentless fundraising” to absorb huge losses and that companies would soon face limits on how long they could continue to absorb them.
Zepto’s losses reportedly It rose to 33.67 billion rupees in fiscal year 2025 from 12.15 billion rupees in the previous year.
Data from LSEG showed that: Fast It reported a net loss of 31.17 billion rupees in the 25th fiscal year, down from 23.50 billion rupees in the previous year. Forever It reported net income of 5.27 billion rupees in FY25.
“If companies do not move towards profitability, a bubble could occur,” Taurani said.
