Zepto IPO: Jefferies Flags Profitability Challenges Despite Strong Growth
📢 ZEPTО IPO NEWS: Jefferies Highlights Profitability Gap Ahead of Listing 🚀
As Zepto prepares for its massive â‚ą8,010 crore (~$1 Billion) IPO, global brokerage house Jefferies has released a detailed analysis comparing the quick-commerce pure-play with its listed peers, Blinkit (Eternal) and Swiggy Instamart.
While Zepto has shown explosive growth, Jefferies points out a few structural and operational divergences that investors need to watch out for.
đź“Š Key Takeaways & Comparisons (FY26 / Q4 FY26)
Profitability Divergence: Blinkit has emerged as the only player to turn Adjusted EBITDA positive (reporting â‚ą37 crore profit in Q4 FY26). In contrast, Zepto remains deep in the red with an Adjusted EBITDA loss of â‚ą5,041 crore for FY26 (losing approx. â‚ą78.75 per order).
Average Order Value (AOV): Zepto operates on a discount-heavy, value-first strategy (similar to DMart's EDLP model). This keeps its net average order value low at ₹360, compared to ₹500–₹525*l for Blinkit and Instamart.
Scale & Efficiency: Zepto has successfully established itself as a clear No. 2 in market share (~35% of top-three order volumes). Impressively, it generated 210 million orders in Q4 FY26 using just 1,139 dark stores—nearly double the orders of Swiggy Instamart, which operates a similar store count (1,143). Blinkit still dominates with 2,243 stores and 273.9 million orders.
Reporting Differences: Jefferies flags that Zepto’s disclosures use metrics like Net Receivables Value (NRV) and a wholesale-led revenue structure, making a direct comparison with Blinkit's take-rate framework slightly complicated for retail investors.
đź’ˇ The Investor's Takeaway
Zepto's rapid scaling and high throughput per store are highly encouraging, showing the core model functions well at a transaction level. However, its aggressive expansion means it is still heavily burning cash compared to Blinkit's self-sustaining metrics.
The upcoming IPO essentially asks public investors to trust that future profitability will quickly follow its current blistering scale.