Profitability a concern as Zepto lines up IPO

Profitability a concern as Zepto lines up IPO


Profitability a concern as Zepto lines up IPO

BENGALURU: Quick commerce platform Zepto is pitching a high-volume model to public market investors as it prepares for its IPO, arguing that scale, density and advertising will eventually drive profitability.The company’s updated draft red herring prospectus (DRHP) shows a business growing rapidly on orders but still trailing market leader Blinkit on profitability.Zepto processed 210 million orders in the Jan-March quarter of FY26, nearly double Swiggy Instamart’s 112.6 million orders during the period. Blinkit processed 273.9 million orders. Yet losses remain steep. Zepto’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) loss stood at Rs 1,248 crore in the March quarter.Instamart reported an adjusted EBITDA loss of Rs 858 crore, while Blinkit posted an adjusted EBITDA profit of Rs 37 crore.The comparison is not entirely like-for-like. 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.



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