Zepto files for $1.3-billion IPO: Report
In a significant development, the quick commerce platform Zepto has received approval from its board of directors for a $1.3 billion (approximately ₹11,680 crore) Initial Public Offering (IPO) with markets regulator Securities and Exchange Board of India (SEBI), according to sources. This move is expected to be a major milestone for the company, which has been rapidly expanding its operations in the Indian market.
As per the reports, the company plans to raise around ₹11,000 crore through a fresh issue, 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 the company to move forward with the listing process.
Zepto, which was founded in 2021, has been growing at a rapid pace, with its valuation increasing significantly over the past year. The company’s decision to go public is seen as a strategic move to raise capital and further accelerate its growth plans. With the Indian e-commerce market expected to continue growing in the coming years, Zepto’s IPO is likely to generate significant interest among investors.
The company’s business model is based on providing quick and convenient delivery of groceries and other essentials to customers. Zepto has been able to achieve this by leveraging its network of dark stores, which are essentially small warehouses located in proximity to customers. This allows the company to offer fast and reliable delivery, often within a matter of minutes.
Zepto’s growth has been fueled by the increasing demand for online grocery shopping, particularly during the COVID-19 pandemic. As more and more people turned to online platforms to purchase essential items, Zepto was able to capitalize on this trend and expand its customer base rapidly.
The company’s decision to go public is also seen as a testament to the growing maturity of the Indian startup ecosystem. In recent years, several Indian startups have gone public, including companies such as Zomato, Paytm, and Nykaa. These listings have not only provided a significant liquidity event for investors but also helped to increase the visibility and credibility of the Indian startup ecosystem.
The IPO process is expected to be completed in the coming months, subject to regulatory approvals and market conditions. As per the reports, the company has already filed its draft red herring prospectus (DRHP) with SEBI, which is the first step towards listing on the stock exchanges.
The DRHP provides detailed information about the company’s business, financials, and management team, as well as the objectives of the IPO. The document is reviewed by SEBI, which provides its comments and suggestions to the company. Once the company addresses these comments and makes any necessary changes, the DRHP is finalized, and the company can proceed with the IPO.
Zepto’s IPO is expected to be one of the largest listings in the Indian market in recent years. The company’s valuation is expected to be around $5-6 billion, making it one of the most valuable startups in the country.
The success of Zepto’s IPO will depend on a variety of factors, including the company’s financial performance, growth prospects, and the overall market conditions. However, given the company’s strong track record and the growing demand for online grocery shopping, Zepto’s listing is likely to generate significant interest among investors.
In conclusion, Zepto’s decision to go public is a significant development for the Indian startup ecosystem. The company’s growth and success have been impressive, and its IPO is expected to provide a major liquidity event for investors. As the company moves forward with the listing process, it will be interesting to see how the market responds to its IPO.
Source:
https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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