Knowledge Centre

Zepto files confidential DRHP for a $1.22 billion IPO, joining Zomato and Swiggy on Dalal Street. But here's the reality check: while Zomato has handsomely rewarded public investors with strong post-listing performance, Swiggy continues to trade below its issue price, struggling to justify its valuation. More recently Swiggy also raised 1.2 billion dollars in QIP just a year after its listing.

The structural problem? Quick commerce burns cash relentlessly. Zepto's FY25 financials tell the story: ₹9,669 crore in revenue against ₹3,367 crore in losses. That's a 35% loss-to-revenue ratio in a sector defined by intense competition, aggressive discounting, and wafer-thin margins.

Every player is racing to achieve scale while subsidizing consumer behavior. The business model works only if someone eventually stops bleeding—but when three well-funded competitors are locked in combat, profitability remains elusive.

For public investors, the question is stark: are you buying into a growth story or funding a discount war? Until consolidation happens or unit economics improve dramatically, returns will remain uncertain.

Meanwhile, consumers? We're the clear winners, enjoying 10-minute deliveries at unsustainable prices—at least until the music stops.