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 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 revenue increasing manifold over the past year. The company’s quick commerce platform allows customers to order groceries and other essentials, which are then delivered to their doorstep within a matter of minutes. This unique business model has resonated with customers, who are increasingly looking for convenient and fast delivery options.
The IPO filing is a testament to the company’s success and its plans for further expansion. With the funds raised through the IPO, Zepto is expected to invest in its technology and infrastructure, as well as expand its operations to new markets. The company is also expected to use the funds to enhance its customer experience, which is a key differentiator for the brand.
The Indian e-commerce market is highly competitive, with several players operating in the space. However, Zepto’s focus on quick commerce has allowed it to carve out a niche for itself. The company’s ability to deliver products quickly and efficiently has been a major draw for customers, who are willing to pay a premium for the convenience.
The IPO market in India has been booming over the past year, with several companies listing their shares on the bourses. The success of these IPOs has encouraged other companies to follow suit, and Zepto’s IPO is expected to be one of the most highly anticipated listings of the year.
The company’s decision to list its shares on the Indian bourses is also expected to provide a liquidity exit to its early investors, who have been backing the company since its inception. The IPO will also provide an opportunity for new investors to participate in the company’s growth story, which is expected to be exciting over the next few years.
In terms of valuation, Zepto’s $1.3 billion IPO is expected to be one of the largest listings of the year. The company’s valuation is expected to be around $5-6 billion, which is a significant increase from its previous valuation of around $2-3 billion. The company’s growth prospects and its unique business model are expected to be major draws for investors, who are looking for companies with strong potential for growth.
The IPO process is expected to be completed over the next few months, with the company expected to list its shares on the bourses by the middle of the year. The listing is expected to be a major milestone for the company, which is expected to use the funds raised to drive its growth and expansion plans.
In conclusion, Zepto’s decision to file for a $1.3 billion IPO is a significant development for the company, which is expected to be a major milestone in its growth journey. The company’s unique business model and its focus on quick commerce have allowed it to carve out a niche for itself in the Indian e-commerce market. With the funds raised through the IPO, Zepto is expected to invest in its technology and infrastructure, as well as expand its operations to new markets.
As the company moves forward with its IPO plans, it will be interesting to see how the market responds to its listing. With its strong growth prospects and its unique business model, Zepto is expected to be a major draw for investors, who are looking for companies with strong potential for growth.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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