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 expanding its operations rapidly 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. The development is a testament to the growing demand for quick commerce services in India, and Zepto’s efforts to capitalize on this trend.
Zepto, which was founded in 2021, has been growing at a rapid pace, with its services now available in several major cities across India. The company’s platform allows users to order groceries and other essentials, which are then delivered to their doorstep within a short span of time, often within 10-15 minutes. This convenience factor has been a major draw for customers, who are increasingly looking for fast and reliable delivery options.
The company’s decision to go public is expected to provide a significant boost to its expansion plans, as it looks to invest in new technologies, hire more talent, and expand its services to new areas. The IPO is also expected to provide an exit opportunity for early investors, who have been backing the company since its inception.
The Indian IPO market has been witnessing a surge in activity in recent times, with several companies across various sectors looking to raise funds from the public markets. The success of these IPOs has been driven by the growing demand for Indian stocks, both from domestic and international investors.
Zepto’s IPO plans come at a time when the Indian e-commerce market is expected to continue growing at a rapid pace. The market is expected to reach $150 billion by 2025, driven by the increasing adoption of online shopping, particularly in the grocery segment. The quick commerce segment, in particular, is expected to be a major driver of growth, with companies like Zepto, Blinkit, and Dunzo competing for market share.
The company’s decision to file for an IPO is also a testament to the growing maturity of the Indian startup ecosystem. Several Indian startups have gone public in recent times, including companies like Zomato, Paytm, and Nykaa. These listings have not only provided a significant boost to the companies but have also helped to build confidence among investors and customers.
As Zepto moves forward with its IPO plans, it will be interesting to see how the company’s listing is received by investors. The company’s financials, growth prospects, and competitive positioning will be closely watched by analysts and investors, who will be looking to assess the company’s potential for long-term growth.
In conclusion, Zepto’s decision to file for a $1.3 billion IPO is a significant development for the company and the Indian startup ecosystem. The listing is expected to provide a major boost to the company’s expansion plans, while also providing an exit opportunity for early investors. As the company moves forward with its IPO plans, it will be interesting to see how the listing is received by investors and how the company performs in the long term.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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