900 million dollars in cash?

A reported IPO target swinging between 500 million and 1.3 billion dollars. And a startup that is not even six years old preparing to knock on the public market’s door.

That is the context in which Zepto’s latest IPO update needs to be read.

Quick commerce startup Zepto is preparing to confidentially pre file its draft red herring prospectus on December 26, according to recent reports. The company has completed its pre filing work and is expected to inform stakeholders shortly. If timelines stay on track, Zepto plans to go public next year, potentially becoming one of the youngest startups in India to list.

The use of the confidential filing route is a meaningful strategic choice. It allows Zepto to engage with regulators and investors while retaining flexibility on valuation, issue size, and timing. This matters because the numbers around the IPO are evolving. While a Bloomberg report pegs the expected raise at around 500 million dollars, other reports indicate that Zepto has expanded its ambitions significantly, with the planned IPO size now being discussed at up to 1.3 billion dollars, most of it as primary capital.

That gap is not confusion. It reflects optionality.

Zepto’s balance sheet already looks stronger than most late stage startups heading toward an IPO. In 2023, the company raised 665 million dollars in June, followed by 340 million dollars in August and 350 million dollars in November. In October this year, it announced another funding round of around 450 million dollars, valuing the company at roughly 7 billion dollars. As of October, Zepto reportedly had close to 900 million dollars in cash.

So why raise more?

The answer lies in the competitive landscape. Blinkit owner Eternal and Swiggy, which runs Instamart, together command an estimated 1.8 to 2 billion dollars in deployable capital. Quick commerce is not just a growth race. It is a capital intensive, infrastructure heavy battle where endurance matters as much as speed. Entering public markets without a decisive capital buffer would limit strategic freedom almost immediately.

Zepto’s banker lineup reinforces this seriousness. Axis Bank, Motilal Oswal Investment Advisors, and India arms of Morgan Stanley, HSBC, and Goldman Sachs point to a listing aimed squarely at institutional investors. The public issue is expected to include both fresh shares and an offer for sale, with a large portion of proceeds earmarked for expanding its quick commerce operations.

The company has also formally transitioned from Zepto Private Limited to Zepto Limited, a necessary step that signals readiness for public market scrutiny across governance, disclosures, and unit economics.

As Zepto moves closer to filing, the real question is no longer whether it can raise capital. The question is whether public markets are ready to underwrite a quick commerce model that is still evolving, still capital hungry, and still fiercely competitive.

Will investors reward scale and ambition, or will they demand a sharper pivot toward profitability and discipline? And more importantly, which version of Zepto will show up in the final prospectus?

Curious to hear how others are reading this moment.