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 SEBI, according to sources. This news has sent ripples in the Indian startup ecosystem, with many industry insiders and experts weighing in on the implications of this move.
As per the report, 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 first step towards listing on the Indian stock exchanges.
For the uninitiated, Zepto is a quick commerce platform that has gained immense popularity in recent times. The company’s business model revolves around delivering groceries and other essentials to customers within a short span of 10-15 minutes. This has disrupted the traditional e-commerce space, with many players now trying to replicate Zepto’s model.
The IPO filing is a significant milestone for Zepto, which has been expanding its operations rapidly across the country. The company has been backed by prominent investors, including Y Combinator, Glade Brook Capital, and Nexus Venture Partners, among others. With this IPO, Zepto aims to further accelerate its growth plans, expand its geographical reach, and strengthen its market position.
The Indian IPO market has been booming in recent times, with many startups and new-age companies opting for public listings. The success of these IPOs has been driven by the growing demand for digital services, the increasing adoption of online platforms, and the favorable regulatory environment.
However, the Zepto IPO is likely to be closely watched by investors, analysts, and industry experts. The company’s financial performance, growth prospects, and competitive positioning will be under scrutiny, as investors try to gauge the potential returns on their investment.
As per the draft papers filed with SEBI, Zepto’s IPO will comprise a fresh issue of shares worth ₹11,000 crore, with the remaining amount being raised through an offer for sale (OFS) by early investors. The OFS will provide an exit opportunity for these investors, who have been backing the company since its early days.
The Zepto IPO is expected to be one of the largest IPOs in the Indian startup ecosystem, surpassing the likes of Zomato, Paytm, and Nykaa. The company’s valuation is expected to be in the range of $5-6 billion, making it one of the most valuable startups in India.
The success of the Zepto IPO will have significant implications for the Indian startup ecosystem. It will demonstrate the ability of new-age companies to raise large amounts of capital from the public markets, providing a template for other startups to follow.
However, the Zepto IPO also poses significant challenges for the company. The public listing will bring increased scrutiny and transparency, with investors and analysts closely monitoring the company’s financial performance and growth prospects.
In conclusion, the Zepto IPO filing is a significant development that is expected to have far-reaching implications for the Indian startup ecosystem. As the company prepares to list on the Indian stock exchanges, it will be interesting to watch how the IPO unfolds and what it means for the future of Zepto and the broader startup ecosystem.
Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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