Zepto Files IPO Papers Amid Rapid Quick Commerce Surge; Eternal and Swiggy Shares Rally on Market Dominance Race
Shares of quick commerce giants Eternal Ltd (Blinkit) and Swiggy Ltd saw a modest recovery on Tuesday following the filing of updated draft IPO documents by rival Zepto. The filing highlighted aggressive growth across the sector, as competitors race for market share through intense expansion of logistics networks and dark stores. Both major stocks were trading slightly higher after significant declines in the previous session.Eternal stock, which owns Blinkit, traded 0.8 percent higher at Rs 250.3 in early trade. Swiggy shares also edged up 0.06 percent to Rs 241.35. The market focus intensified on the rapid evolution of the quick commerce landscape as Zepto advances its fundraising plans.
Zepto’s IPO Plans and Valuation Metrics Surface
Zepto late Monday filed an updated draft red herring prospectus (UDRHP) with SEBI for its proposed Initial Public Offering (IPO). The issue comprises a fresh equity issue worth Rs 8,010 crore, supplemented by an offer-for-sale from existing shareholders. This combination sets the total IPO size expectations between Rs 9,000 and Rs 10,000 crore.The filing provides critical data points into the hyper-competitive market dynamics involving Blinkit, Zepto, and Swiggy Instamart. According to the updated prospectus, Zepto’s revenue from operations demonstrated a strong upward trajectory, jumping 75 percent year-on-year to Rs 7,498 crore in the January-March quarter.
Financial Performance Reveals Loss Narrowing and Growth Ahead
Zepto successfully managed to narrow its profitability concerns while achieving massive operational scale. The company's adjusted EBITDA loss narrowed significantly to Rs 1,248 crore, down from Rs 1,764 crore reported a year prior. Furthermore, the updated filing projected revenue for FY26 to more than double, reaching Rs 22,624 crore.The data also provided a clear snapshot of market standing based on transaction value in the March quarter. Zepto recorded Net Receivables Value (NRV) of Rs 8,134 crore. After adjustments for advertising revenue, Zepto's comparable transaction value stood at approximately Rs 7,592 crore.
Market Leaders and Future Investment Strategy Defined by Filing
The filing highlighted the competitive gradient in the sector. While Zepto's transactional value exceeded Swiggy Instamart's estimated Rs 5,674 crore, it was still notably below Blinkit’s established figure of Rs 14,386 crore. This reflects the accelerated pace of growth in the quick commerce market.Zepto intends to leverage the IPO proceeds for comprehensive strategic expansion. The funds are designated for expanding the dark store network and funding lease rentals. Key investments will also be directed towards technology and cloud infrastructure enhancements.
The company further plans to support marketing initiatives and pursue inorganic growth opportunities, solidifying its position amidst the intense industry rivalry.
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