Zepto files for $1.3-billion IPO: Report
In a significant development, the quick commerce platform Zepto has reportedly received approval from its board of directors to file for an initial public offering (IPO) with markets regulator SEBI. According to sources, the company is seeking to raise a whopping $1.3 billion (approximately ₹11,680 crore) through this IPO. This move is expected to make Zepto one of the most valuable startups in India, further solidifying its position in the rapidly growing quick commerce market.
As per the reports, the company plans to raise around ₹11,000 crore through a fresh issue of shares, while the remaining amount will be raised by early investors selling their shares. The shareholders approved the IPO on December 23, paving the way for Zepto to take its next big leap. This development is a testament to the company’s impressive growth trajectory and its potential to disrupt the traditional retail market.
Zepto, which was founded in 2021, has been making waves in the Indian startup ecosystem with its innovative approach to quick commerce. The company has been able to rapidly expand its operations across the country, offering customers a wide range of products at competitive prices. Its business model, which focuses on delivering products within a short span of 10-15 minutes, has resonated well with consumers, particularly in urban areas.
The company’s decision to go public is seen as a strategic move to further accelerate its growth plans. With the funds raised through the IPO, Zepto is expected to invest in expanding its operations, improving its technology infrastructure, and enhancing its customer experience. The company may also use a portion of the funds to acquire other startups or companies that complement its business model.
The Indian IPO market has been witnessing a surge in activity in recent times, with several startups and companies queuing up to go public. The success of these IPOs has been fueled by the growing investor appetite for new-age companies, particularly those in the technology and e-commerce sectors. Zepto’s IPO is expected to be one of the most highly anticipated listings in the coming months, and its success could pave the way for other startups to follow suit.
The quick commerce market in India is expected to witness significant growth in the coming years, driven by increasing consumer demand for convenient and fast delivery options. According to a report by RedSeer Consulting, the Indian quick commerce market is expected to reach $5.5 billion by 2025, growing at a CAGR of 15%. Zepto, with its strong brand presence and robust business model, is well-positioned to capitalize on this trend and emerge as a leader in the market.
The company’s IPO plans have generated significant buzz in the startup ecosystem, with many experts and investors viewing it as a positive development. “Zepto’s decision to go public is a testament to the company’s growth potential and its ability to scale up its operations,” said an industry expert. “The funds raised through the IPO will help the company to further accelerate its growth plans and expand its operations across the country.”
In conclusion, Zepto’s decision to file for a $1.3-billion IPO is a significant development that is expected to have a major impact on the Indian startup ecosystem. With its strong business model and robust growth trajectory, the company is well-positioned to emerge as a leader in the quick commerce market. As the company prepares to go public, it will be interesting to see how it navigates the complex IPO process and how investors respond to its listing.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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