Quick-commerce platform Zepto is pitching a high-volume model to public market investors as it prepares for its initial public offering (IPO), arguing that scale, density and advertising will eventually drive profitability. However, the company's updated draft red herring prospectus (DRHP) reveals a business growing rapidly on orders but still trailing market leader Blinkit on profitability.
IPO Filing Highlights
According to the DRHP filed by Zepto, the company processed 210 million orders in the January-March quarter of fiscal year 2026. This is nearly double the 112.6 million orders reported by Swiggy Instamart during the same period. However, market leader Blinkit processed 273.9 million orders, outpacing Zepto by over 30%.
Despite strong order volumes, Zepto's losses remain steep. The company reported an adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of Rs 1,248 crore in the March quarter. In comparison, Instamart posted an adjusted EBITDA loss of Rs 858 crore, while Blinkit achieved an adjusted EBITDA profit of Rs 37 crore.
Competitive Landscape
The comparison between the three quick-commerce players is not entirely like-for-like, as stated in the DRHP filing. Zepto reports net receivables value (NRV), which includes the value of goods sold after discounts along with user fees, subscription income and advertising revenue. Blinkit reports net order value (NOV), while Instamart follows a marketplace-led model. The filing notes that peer comparisons have limitations because accounting treatments differ across companies.
| Metric | Zepto | Blinkit | Swiggy Instamart |
|---|---|---|---|
| Orders (Q1 FY26) | 210 million | 273.9 million | 112.6 million |
| Adjusted EBITDA (Q1 FY26) | Loss Rs 1,248 crore | Profit Rs 37 crore | Loss Rs 858 crore |
| Reporting Metric | NRV | NOV | Marketplace-led model |
Path to Profitability
Zepto's IPO pitch centers on a high-volume, high-density model where scale and advertising revenue are expected to eventually generate profits. The company is betting that as order volumes grow and customer density increases, unit economics will improve. Advertising income, derived from brands on its platform, is also seen as a key lever to narrow losses. However, the current financials show that Zepto is still far from breakeven, while Blinkit has demonstrated that profitability is achievable in quick-commerce.
Market Context
Zepto is entering public markets at a time when Indian quick-commerce has seen explosive growth, driven by urban consumers' demand for 10-minute deliveries. The sector has attracted significant venture capital and private equity investments, but profitability remains elusive for most players. Zepto's ability to convince public market investors of its path to profit will be critical for the IPO's success.
The next milestone for the company is the final approval from the Securities and Exchange Board of India (SEBI) and the subsequent launch of its IPO. Investors will be closely watching the company's ability to improve margins while maintaining growth momentum.
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