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 making waves in the Indian e-commerce industry with its lightning-fast delivery services.
According to reports, 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 the company to move forward with its plans.
Zepto’s decision to go public is a testament to the growing demand for quick commerce services in India. The company, which was founded in 2021, has been expanding its operations rapidly, with a presence in over 10 cities across the country. Its business model, which focuses on delivering groceries and other essentials within 10-15 minutes, has resonated with consumers, particularly in urban areas.
The IPO is expected to provide a significant boost to Zepto’s growth plans, enabling the company to invest in its technology, infrastructure, and marketing efforts. With the fresh capital, Zepto aims to further expand its reach, improve its services, and strengthen its position in the market.
The Indian e-commerce industry has been witnessing a significant surge in recent years, driven by the growing demand for online shopping, particularly in the wake of the COVID-19 pandemic. The quick commerce segment, in particular, has been gaining traction, with several players, including Zepto, Dunzo, and Swiggy, operating in the space.
Zepto’s IPO plans come at a time when the Indian stock market is witnessing a flurry of activity, with several companies, including startups, lining up to go public. The company’s decision to list on the stock exchange is expected to provide a liquidity exit to its early investors, while also providing an opportunity for new investors to participate in the company’s growth story.
The IPO market in India has been robust in recent years, with several companies, including food delivery platform Zomato, fashion e-tailer Nykaa, and fintech firm Paytm, making successful debuts on the stock exchange. The success of these IPOs has encouraged other companies, including startups, to explore the public markets, and Zepto’s planned IPO is expected to be one of the most highly anticipated listings in the coming months.
The company’s plans to raise ₹11,000 crore through a fresh issue will provide a significant boost to its balance sheet, enabling it to invest in its operations, technology, and marketing efforts. The remaining amount, which will be raised by early investors selling their shares, will provide a liquidity exit to these investors, while also allowing new investors to participate in the company’s growth story.
Zepto’s decision to go public is a significant milestone for the company, and it is expected to have a positive impact on the Indian e-commerce industry as a whole. The company’s focus on quick commerce, combined with its robust technology platform and strong operations, has enabled it to establish a strong presence in the market, and its IPO plans are expected to further accelerate its growth.
In conclusion, Zepto’s planned IPO is a significant development for the Indian e-commerce industry, and it is expected to have a positive impact on the company’s growth plans. With its strong focus on quick commerce, robust technology platform, and robust operations, Zepto is well-positioned to capitalize on the growing demand for online shopping in India. The company’s decision to go public is a testament to the growing maturity of the Indian startup ecosystem, and it is expected to provide a liquidity exit to early investors, while also providing an opportunity for new investors to participate in the company’s growth story.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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