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 rapidly expanding its operations 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. This is a significant amount, and it indicates the confidence that the company has in its business model and its ability to attract investors. 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 has been able to establish itself as a major player in this space, and its IPO is expected to be one of the largest in the Indian startup ecosystem. The funds raised through the IPO will be used to further expand the company’s operations, improve its technology, and increase its market share.
The Indian startup ecosystem has been witnessing a significant surge in IPOs in recent times, with several companies going public in the past year. This trend is expected to continue, with many more companies planning to list their shares on the stock exchanges in the coming months. Zepto’s IPO is expected to be one of the most closely watched, given the company’s strong growth trajectory and its potential for future expansion.
The quick commerce space has been growing rapidly in India, driven by the increasing demand for fast and convenient delivery of groceries and other essentials. Zepto has been at the forefront of this trend, with its app-based platform allowing customers to order a wide range of products and have them delivered to their doorstep within a matter of minutes. The company’s focus on technology and logistics has enabled it to establish a strong presence in the market, and its IPO is expected to further strengthen its position.
The company’s decision to go public is also expected to provide a significant boost to the Indian startup ecosystem. It will demonstrate the potential for Indian startups to scale up and become large, successful companies, and will provide a benchmark for other companies to follow. The IPO will also provide an opportunity for investors to participate in the growth story of the company and to benefit from its future expansion.
In terms of the IPO process, Zepto has already filed its draft red herring prospectus (DRHP) with SEBI, which is the first step towards listing its shares on the stock exchanges. The company will now have to wait for the regulator’s approval, after which it can move forward with the IPO process. The IPO is expected to be launched in the coming months, although the exact timeline has not been disclosed.
Overall, Zepto’s decision to go public is a significant development for the Indian startup ecosystem, and it is expected to have a major impact on the quick commerce space. The company’s focus on technology and logistics has enabled it to establish a strong presence in the market, and its IPO is expected to further strengthen its position. With the Indian startup ecosystem continuing to grow and evolve, it will be interesting to see how Zepto’s IPO unfolds and what it means for the future of the company and the industry as a whole.
In conclusion, Zepto’s $1.3 billion IPO is a significant milestone for the company and the Indian startup ecosystem. The company’s decision to go public is a testament to its strong growth trajectory and its potential for future expansion. The IPO is expected to provide a significant boost to the company’s operations and will demonstrate the potential for Indian startups to scale up and become large, successful companies.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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