Quick-commerce startup Zepto is preparing to file confidential papers for a $500 million initial public offering (IPO) in Mumbai as early as next week. The offering will include a mix of fresh shares and secondary sales, with proceeds earmarked for expansion amid intensifying competition in India’s fast-growing grocery delivery market.
India’s quick-commerce sector is set for another milestone as Zepto, the 10-minute grocery delivery platform, readies its IPO filing. According to reports, the company will confidentially submit draft papers in Mumbai, working with leading investment banks to structure the offering. This move follows Zepto’s $450 million fundraising in October, which valued the firm at around $7 billion.
Key Highlights:
-
IPO Size: Zepto plans to raise $500 million through a combination of fresh issue and secondary share sales.
-
Advisors: The company is working with Axis Bank, Motilal Oswal Investment Advisors, Morgan Stanley, HSBC, and Goldman Sachs.
-
Use of Proceeds: Funds will be directed toward business expansion and scaling operations in India’s competitive quick-commerce space.
-
Market Context: Zepto competes with Amazon India, Swiggy, Zomato, and Tata’s BigBasket, all vying for dominance in rapid grocery delivery.
-
Valuation: The IPO follows Zepto’s recent fundraising round that pegged its valuation at $7 billion.
Zepto’s IPO marks a pivotal moment for India’s startup ecosystem, signaling investor confidence in quick-commerce as a sustainable growth model.
Sources: Financial Express, Moneycontrol, BusinessWorld, Economic Times Retail, Hindustan Times