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), sources told Inc42. This move is expected to be a major milestone for the company, which has been growing rapidly in the Indian market.
According to 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 one of the fastest-growing startups in the Indian ecosystem. The company has been backed by prominent investors such as Y Combinator, Nexus Venture Partners, and Glade Brook Capital, among others. With its quick commerce platform, Zepto has been able to disrupt the traditional grocery delivery market in India, offering customers a wide range of products at competitive prices.
The company’s business model is based on a network of dark stores, which are essentially warehouses that are used to store and dispatch products to customers. This model allows Zepto to offer fast and reliable delivery to its customers, with most orders being delivered within 10-15 minutes. The company has been expanding its services to new cities and towns, and has been investing heavily in technology and logistics to improve its operations.
The IPO filing by Zepto is a significant development for the Indian startup ecosystem, which has seen a surge in listings in recent years. The company’s listing is expected to provide a major boost to the ecosystem, and is likely to attract significant interest from investors.
The Indian IPO market has been witnessing a surge in activity in recent years, with several high-profile listings taking place. The market has been driven by the listing of companies such as Zomato, Paytm, and Nykaa, among others. The success of these listings has encouraged other startups to consider listing on the public markets, and Zepto’s IPO filing is a testament to this trend.
The quick commerce platform’s IPO filing is also expected to provide a major exit opportunity for early investors, who have been backing the company since its inception. The listing is expected to provide a significant return on investment for these investors, and is likely to attract new investors to the company.
In terms of the IPO process, Zepto is expected to file its draft red herring prospectus (DRHP) with SEBI in the coming weeks. The DRHP will provide detailed information about the company’s business, financials, and growth plans, and will be used by investors to make informed decisions about investing in the company.
The IPO is expected to be managed by a consortium of investment banks, which will be responsible for advising the company on the listing process and helping it to raise capital from investors. The investment banks will also be responsible for conducting due diligence on the company and providing a detailed report on its financials and business operations.
Overall, Zepto’s IPO filing is a significant development for the Indian startup ecosystem, and is expected to provide a major boost to the company’s growth plans. With its strong business model and rapid growth, Zepto is well-positioned to capitalize on the growing demand for quick commerce services in India.
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 investor backing and rapid growth, Zepto is likely to attract significant interest from investors, and its listing is expected to be one of the most highly anticipated IPOs of the year.
In conclusion, Zepto’s IPO filing is a significant development for the Indian startup ecosystem, and is expected to provide a major boost to the company’s growth plans. With its strong business model and rapid growth, Zepto is well-positioned to capitalize on the growing demand for quick commerce services in India, and its listing is likely to be one of the most highly anticipated IPOs of the year.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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