Zepto’s Ad Revenue Hits Rs 1,636 Crore, Surpasses Rs 1,389 Crore Marketing Spend Ahead of IPO
Zepto generated Rs 1,635.7 crore in advertising revenue in FY26, surpassing its marketing spend of Rs 1,389.1 crore, according to its updated IPO filing with Sebi.
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Zepto, the fast commerce platform planning an IPO, generated more revenue from advertising than it spent on marketing in FY26, underscoring the growing importance of its retail media business ahead of its debut in the public markets.
As per Zepto’s updated draft red herring prospectus (DRHP), the advertising revenue jumped to Rs 1,635.7 crore in FY26, ahead of advertising and promotional expenses of Rs 1,389.1 crore in the same period.
The milestone represents a sea change for the company’s advertising economics, with ad revenue becoming a large component of overall business performance.
Also Read: Zepto plans marketing push with IPO funds amid intensifying quick commerce rivalry
Advertising Business Scales Rapidly:
According to reports, Zepto’s advertising revenue has surged over the last three years.
In FY24, the company posted ad revenue of Rs 49.1 crore, which rose to Rs 651.2 crore in FY25 and then jumped to Rs 1,635.7 crore in FY26.
Zepto also kept spending big on user acquisition and brand building. However, the growth in advertising income was greater than the growth in marketing expenditure.
Advertising and promotional expenses were Rs 303.5 crore in FY24, rising to Rs 1,186.6 crore in FY25 and Rs 1,389.1 crore in FY26.
Consequently, the advertising expenses as a percentage of revenue from operations decreased to 6.14% in FY26 from 10.68% a year ago.
Also Read: Amazon, Zomato, Swiggy, Zepto and Meesho Form Digital Commerce Coalition
Revenue More Than Doubles:
The overall business of the company also grew strongly.
The revenue from operations grew 104% to Rs 22,623.5 crore in FY26 from Rs 11,109.9 crore in FY25, underscoring a continued growth of India’s quick commerce market.
This momentum was starkly visible in the last quarter of the financial year when Zepto recorded advertisement revenue of Rs 542.96 crore in the three months ended March 31, 2026.
IPO Plans Move Forward:
Zepto has filed updated IPO documents with the Securities and Exchange Board of India (Sebi) for a fresh issue of Rs 8,010 crore.
The total issue size is expected to range between Rs 11,000 crore and Rs 12,000 crore, depending on the final offer-for-sale component.
The DRHP also highlighted Zepto's growing position within India's quick commerce sector. The company estimated its market share at 29% in FY26, behind Blinkit's 46%, while claiming to be the fastest-growing player by order volume between FY24 and FY26.
