Zepto eyes premium grocery market with Select ahead of IPO launch

MUMBAI: Looks like India’s quick-commerce race is getting a little more gourmet. As the countdown to its blockbuster stock market debut gathers pace, Zepto is reportedly stocking up on premium groceries with a new in-app offering aimed at shoppers willing to pay for a little extra quality.

IPO-bound quick-commerce platform Zepto is preparing to launch ‘Select’, a premium grocery service that will offer curated imported and high-end food products.

The service, expected to roll out in the coming weeks, follows a pilot conducted in select locations that reportedly received encouraging customer response. The wider launch will place Zepto in direct competition with offerings such as Blinkit Gourmet and FirstClub, as the battle for affluent consumers intensifies in India’s fast-growing quick-commerce market.

Zepto has already begun onboarding premium consumer brands to build its catalogue ahead of the launch. The company is also expected to compete aggressively on pricing, with several imported and premium products likely to be offered at more competitive prices than rival platforms.

The move comes as Zepto prepares for one of India’s biggest new-age technology IPOs. The company has filed draft papers for a public issue comprising a Rs 8,010 crore fresh issue along with an offer for sale by existing shareholders, taking the total issue size to an estimated Rs 11,000-12,000 crore.

According to the draft prospectus, proceeds from the fresh issue will be used to expand Zepto’s dark store network, invest in technology and cloud infrastructure, strengthen marketing initiatives and pursue inorganic growth opportunities.

The proposed IPO is being managed by Axis Capital, Morgan Stanley, Goldman Sachs, Motilal Oswal, HSBC, JM Financial and IIFL Capital, with the company targeting a listing on both the BSE and NSE.

The premium push follows a year of rapid expansion for the Bengaluru-based company. Zepto’s revenue from operations more than doubled to Rs 22,624 crore in FY26, up from Rs 11,110 crore in FY25, while its net loss widened to Rs 5,905 crore from Rs 4,700 crore over the same period as it continued investing heavily in growth.

Operational metrics also reflected stronger execution. During the January-March quarter, Zepto processed 210 million orders across 1,139 dark stores, averaging 2.33 million orders every day. Orders per store per day climbed to 2,140, up from 1,425 a year earlier, marking a 50 per cent improvement in store productivity.

With Select, Zepto is signalling that the next battleground in quick commerce may not be speed alone, but also the ability to deliver premium experiences as it seeks to impress both consumers and public market investors ahead of its listing.