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 to file for an initial public offering (IPO) worth $1.3 billion (approximately ₹11,680 crore) with markets regulator SEBI. This news has sent shockwaves in the Indian startup ecosystem, with many experts viewing it as a testament to the growing demand for quick commerce services in the country.
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, paving the way for Zepto to take its first step towards going public.
For the uninitiated, Zepto is a quick commerce platform that delivers groceries and other essentials to customers within a matter of minutes. The company was founded in 2021 and has since then gained immense popularity among Indian consumers, thanks to its lightning-fast delivery times and wide range of products.
The IPO filing is a significant milestone for Zepto, which has been expanding its services rapidly across the country. The company has been investing heavily in its logistics and supply chain infrastructure, which has enabled it to maintain its promise of delivering products within 10-15 minutes.
The $1.3 billion IPO is expected to be one of the largest in the Indian startup ecosystem, and it will provide Zepto with the necessary funds to further expand its services and strengthen its market position. The company plans to use the funds raised from the IPO to enhance its technology infrastructure, expand its product offerings, and increase its marketing efforts.
The IPO filing is also expected to provide a liquidity exit to early investors, who have been waiting for an opportunity to cash out their investments. The sale of shares by early investors will also help to boost the company’s valuation, which is expected to be in the range of $5-6 billion.
The news of Zepto’s IPO filing has been welcomed by the Indian startup community, which sees it as a positive development for the ecosystem. Many experts believe that the IPO will provide a much-needed boost to the Indian startup ecosystem, which has been facing a funding crunch in recent times.
“Zepto’s IPO filing is a significant development for the Indian startup ecosystem,” said a startup founder, who wished to remain anonymous. “It shows that Indian startups have the potential to go public and raise large amounts of capital from the public markets. This will provide a much-needed boost to the ecosystem and encourage more startups to explore the IPO route.”
The IPO filing is also expected to attract attention from investors, who are looking to invest in high-growth startups. Zepto’s IPO is expected to be one of the most highly anticipated IPOs in the Indian startup ecosystem, and it will provide investors with an opportunity to invest in a high-growth company with a strong track record of performance.
In conclusion, Zepto’s IPO filing is a significant development for the Indian startup ecosystem, and it marks a major milestone for the company. The $1.3 billion IPO is expected to provide Zepto with the necessary funds to further expand its services and strengthen its market position, while also providing a liquidity exit to early investors.
As the Indian startup ecosystem continues to evolve, it will be interesting to see how Zepto’s IPO filing plays out. Will the company be able to raise the necessary funds, and will it be able to maintain its growth trajectory? Only time will tell, but one thing is certain – Zepto’s IPO filing is a significant development that will be watched closely by investors, startup founders, and industry experts.
Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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