Zepto Limited: Business Model, Financials, Funding, Market Share & IPO Details 2026

Zepto Ltd. is a quick commerce startup headquartered in Bengaluru. It was founded back in 2021 by two Stanford dropouts, Aadit Palicha and Kaivalya Vohra. The startup was primarily named Kiranakart Technologies Pvt. Ltd., and was founded with a vision of ultra-fast delivery of grocery items, and later expanded into different verticals such as electronic & appliances, health & beauty, and Lifestyle Products.

The initial business model during Kiranakart Technologies included facilitating grocery delivery in association with local kirana stores, but the idea did not scale much. The rebranded business model Zepto operates a nationwide network of “dark stores” (micro-warehouses) to fulfill 10-minute delivery orders to the customer. Its business model uses mobile apps for ordering and charges commission and fees. Zepto covers an approximate 28–32% market share of India’s Quick-commerce sector.

It has been just five years since Zepto was founded, and the company is now planning to go public and scale higher. According to publicly available reports, following SEBI's approval in May for its confidentially filed DRHP (December 2025), Zepto has filed its Updated Draft Red Herring Prospectus (UDRHP) with SEBI in June 2026, providing investors with updated financial and business disclosures as it moves closer to its public listing.

Zepto Ltd. – A Quick Overview

Origin and History

Here is a brief overview of how Zepto originated and evolved over the years.

2020 – Founded Kiranakart Technologies Private Limited

In 2020, two young Stanford dropouts, Aadit Palicha and Kaivalya Vohra, founded Kiranakart Technologies Private Limited to facilitate grocery delivery through local kirana stores.

2021 – Rebranded as Zepto

The company launched and rebranded its consumer-facing platform as Zepto in 2021, shifting its focus toward the 10-minute grocery delivery model powered by dark stores.

2022 – Launch of Zepto Cafe

In 2022, Zepto expanded beyond grocery delivery with the launch of Zepto Cafe, entering the rapid food and beverage delivery segment with coffee, snacks, and ready-to-eat products.

2023 – Zepto Became a Unicorn

In 2023, the company raised $200 million in its Series E funding round led by StepStone Group and Goodwater Capital at a valuation of approximately $1.4 billion, officially achieving unicorn status.

2024 – Launch of Zepto Pass

The company introduced Zepto Pass, a subscription-based membership program offering free deliveries, discounts, and loyalty benefits to improve customer retention.

2025 – Launch of Zepto Pharmacy and Confidential Filing of DRHP

In 2025, Zepto expanded into healthcare with the launch of Zepto Pharmacy, offering 10-minute medicine delivery in selected areas of Mumbai, Bengaluru, Delhi-NCR, and Hyderabad.

In mid-2025, the company officially changed its legal name from Kiranakart Technologies Limited to Zepto Limited. Later in the year, Zepto confidentially filed its Draft Red Herring Prospectus (DRHP) with SEBI for a proposed IPO reportedly targeting approximately $1 billion.

2026 - Received SEBI’s Observation Letter (Approval) & Filed UDRHP

In May 2026, Zepto received SEBI’s observation letter (clearance) on its confidential DRHP. It filed the Updated DRHP (UDRHP) in June 2026, incorporating SEBI’s feedback, latest financials, and other updates. This is the standard next step to prepare for the IPO launch targeted for July 2026.
 

Founders and Leadership

Zepto Ltd. was founded and scaled by two young entrepreneurs. The company's key leadership team includes:

Note: Board composition and leadership details are based on publicly available information and may change over time.

Business & Operations

Zepto operates on a B2C Model. However, Zepto’s core offering is ultra-fast grocery and essentials delivery. Over time, it has expanded its Key product categories,

Products and Services

• Fresh & Pantry: Fruits, vegetables, dairy, bakery, staples (rice, flour, etc.), staples (dal, oil).
• Packaged Goods: Snacks, beverages, packaged foods, household supplies, toiletries.
• Non-food essentials: Personal care, baby care, and some electronics accessories. 
• Zepto Cafe: A sub-brand (launched 2022) delivering hot snacks and coffee from mini-kitchens attached to dark stores.
• Zepto Pharmacy: Launched in 2025 for 10-min delivery of medicines in four major metro areas.

Over the years, Zepto implemented several strategies to retain its customer base. Zepto also offered a paid loyalty program, originally Zepto Pass and Zepto Daily, giving free delivery/ discounts on orders. However, by Feb 2026, Zepto shut down the Zepto Pass and Zepto Daily program and simplified its offerings to focus on its core value.

Revenue Streams

Zepto earns by taking a commission on orders and deliveries, and Covenience Fees.

• Product Margins: Zepto adds a markup (often 15-20% of Gross Merchandise Value) and sells directly to customers. 
• Delivery and Convenience Fees: Charges per-order delivery or platform fees (variable based on order value, distance, demand, or time). 
• Advertising and Brand Promotions: It includes in-app ads, sponsored listings, promotions, and retail media.

Financial Overview 

Let’s have a look at the financial overview of Zepto Ltd.

(Note: The data presented above are estimates and are represented for informational purposes only.)

Funding Rounds

Here is a brief overview of Zepto Limited's funding rounds: 

Note: The above data is compiled from media reports, the company’s Wikipedia page, and investor disclosures. The funding round and valuation details may vary across publicly available sources.  

Peer Comparison

Over the years, Zepto has emerged as one of India's leading quick-commerce companies alongside Blinkit and Swiggy Instamart.

Note: Market-share estimates are based on publicly available industry reports and may vary by source and reporting period.

Business Strength and USPs 

Zepto Limited’s business strength and USPs are as follows:

• Speed and Network: Zepto’s 10-minute delivery promise (from order to doorstep) is its signature USP, enabled by its large dark-store network (1000+ stores) and proximity strategy
• Innovative Offerings: Zepto introduced loyalty/subscription programs in quick-commerce in India, like Zepto Pass and Zepto Daily (currently inactive), and quickly moved into adjacent categories (food via Zepto Cafe, pharma via Zepto Pharmacy)
• Operational Focus: The co-founders emphasize unit economics, aiming for profitable dark stores. Reports note Zepto achieved “multiple dozens” of profitable stores by early 2023, indicating improving per-store economics.
• Tech & Data: Uses AI-based demand forecasting and dynamic routing to optimize inventory and speed. Large amounts of data on order patterns help refine the model.
• Strong Management: Founders have international exposure and a track record of execution. A mature board with experienced VC partners (YC, Nexus) provides strategic guidance.

Future Outlook & Growth Plans 

As of May 2026, Zepto continues to scale while sharpening its focus on unit economics and profitability ahead of its anticipated IPO. Key highlights include:

• Geographic Expansion: Zepto is deepening its presence in existing markets and making selective entry into Tier-2/3 cities, while prioritizing store density for better economics.
• Product Vertical Expansion: Scaling Zepto Pharmacy (10-min medicine delivery) with a compliance-focused approach. 
• IPO: After a confidential DRHP filing and SEBI approval, as per reports circulating in May 2026, Zepto filed Updated Draft Red Herring Prospectus in June 2026 and plans to raise an estimated $ 1 billion (₹8,000-9000 Crores).

Recent Market Trends

Zepto confidentially filed its Draft Red Herring Prospectus (DRHP) with SEBI in December 2025. The company received SEBI’s observations on May 8, 2026. Following the SEBI’s approval, Zepto filed the UDRHP in June 2026 as the next process in its potential IPO launch this year.

As per reports, it is planning to target an IPO with a fresh issue of equity shares worth ₹8,010 crore and an offer for sale (OFS) of approximately 113.47 million shares by existing investors, including Nexus Venture Partners, Contrary ZEP Holdings, Razor Ventures Zepto LLC, Kaiser Foundation Hospitals, and Kaiser Permanente Group Trust. The company is targeting a listing in the July–September quarter of 2026, making it one of the most talked-about IPOs of the year.

With the IPO process progressing through the UDRHP stage, investor interest in Zepto's unlisted shares may remain strong, as market participants closely track the company's valuation, growth plans, and listing details ahead of its public debut. 

FAQs

Is Zepto a listed company?

No. As of May 2026, Zepto remains privately held, though it is preparing for a proposed IPO.

Who owns Zepto?

Zepto was founded by Aadit Palicha and Kaivalya Vohra, while ownership is shared among founders, employees, and institutional investors.

What is Zepto's valuation?

According to recent funding reports, Zepto's valuation has crossed several billion dollars and continues to grow ahead of its proposed IPO.

How does Zepto make money?

Zepto earns through product margins, delivery fees, convenience fees, advertising revenue, and brand promotions.

Disclaimer: This Company analysis is based on publicly available information through Wikipedia pages, company filings, and analyst estimates as of May 2026. Zepto’s full financials and key details are not fully disclosed and widely available. This is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decision.