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 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, 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, marking a major milestone for the company.
This move by Zepto is seen as a significant step in the Indian startup ecosystem, as it is one of the largest IPO filings in recent times. The company’s decision to go public is expected to provide a boost to the Indian stock market, which has been witnessing a slowdown in recent months. The IPO is also expected to provide a liquidity event for early investors and employees of the company, who have been waiting for a chance to monetize their investments.
Zepto, which was founded in 2021, has been one of the fastest-growing startups in India. The company has disrupted the traditional grocery delivery market with its quick commerce platform, which promises to deliver groceries and other essentials within 10-15 minutes. The company has been able to achieve this through its network of dark stores, which are essentially small warehouses that are used to store inventory. The company’s algorithm-powered platform ensures that orders are fulfilled quickly and efficiently, providing a seamless experience for customers.
The company’s growth has been fueled by its ability to provide a convenient and reliable service to customers. Zepto has been able to expand its operations to several cities across India, including Mumbai, Delhi, and Bangalore. The company has also been able to attract a large customer base, with millions of customers using its platform every month. The company’s revenue has been growing rapidly, with estimates suggesting that it has crossed ₹1,000 crore in annual revenue.
The IPO filing by Zepto is expected to be a major event in the Indian startup ecosystem. The company’s decision to go public is seen as a vote of confidence in the Indian stock market, which has been witnessing a slowdown in recent months. The IPO is also expected to provide a boost to the Indian economy, as it is expected to attract foreign investment and provide a liquidity event for early investors and employees.
The IPO filing by Zepto is also seen as a sign of maturity for the Indian startup ecosystem. The company’s decision to go public is a testament to the fact that Indian startups are now ready to take the next step and list on the public markets. This is expected to provide a boost to the Indian startup ecosystem, as it is expected to attract more investment and talent to the sector.
The details of the IPO filing by Zepto are not yet public, but it is expected that the company will provide more information in the coming weeks. The company is expected to file a draft red herring prospectus (DRHP) with SEBI, which will provide more details about the IPO, including the price band and the number of shares on offer. The company is also expected to appoint investment banks to manage the IPO, which will help to raise funds from investors.
In conclusion, the IPO filing by Zepto is a significant development in the Indian startup ecosystem. The company’s decision to go public is seen as a vote of confidence in the Indian stock market and is expected to provide a boost to the Indian economy. The IPO is also expected to provide a liquidity event for early investors and employees, who have been waiting for a chance to monetize their investments. As the company moves forward with its IPO plans, it will be interesting to see how the market responds to the offering.
Source:
https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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