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 SEBI, sources told Inc42. This move is expected to be a major milestone for the company, which has been expanding its operations and customer base rapidly over the past few years.
According to the 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 the listing process.
Zepto’s decision to go public is a testament to the growing demand for quick commerce services in India. The company has been at the forefront of this trend, offering customers a wide range of products, including groceries, fresh produce, and other essentials, with a promise of delivery within a short span of time.
The IPO is expected to provide a significant boost to the company’s expansion plans, allowing it to invest in new technologies, enhance its logistics and supply chain capabilities, and expand its reach to more customers across the country. The fresh funds will also enable Zepto to compete more effectively with other players in the market, including established e-commerce companies and new-age startups.
The Indian e-commerce market has been growing at a rapid pace, driven by increasing internet penetration, a growing middle class, and a rising demand for online shopping. The quick commerce segment, in particular, has been gaining traction, with several players, including Zepto, Swiggy, and Dunzo, offering a range of services to customers.
Zepto’s IPO filing comes at a time when the Indian stock market is witnessing a surge in listings, with several companies, including startups and established players, going public to raise funds and provide liquidity to their shareholders. The company’s listing is expected to be one of the most highly anticipated IPOs of the year, given its strong brand presence, growing customer base, and expanding operations.
The company’s financial performance has been robust, with revenues growing rapidly over the past few years. Zepto has been investing heavily in its technology platform, logistics, and marketing, which has enabled it to expand its customer base and increase its market share.
The IPO will provide an exit opportunity for early investors, including venture capital firms and angel investors, who have backed the company since its inception. The listing will also provide liquidity to employees who hold stock options, allowing them to monetize their holdings.
The approval from the board of directors and the shareholders is a significant milestone for Zepto, and the company is now expected to file its draft red herring prospectus (DRHP) with SEBI, which will provide more details about the IPO, including the price band, issue size, and timeline.
The DRHP will also provide insights into the company’s financial performance, business strategy, and growth plans, which will help investors make informed decisions about the IPO. The listing is expected to be a major event in the Indian capital markets, with several brokerages and investment banks expected to participate in the issue.
In conclusion, Zepto’s decision to file for a $1.3 billion IPO is a significant development for the company and the Indian e-commerce industry. The listing is expected to provide a major boost to the company’s expansion plans, allowing it to invest in new technologies, enhance its logistics and supply chain capabilities, and expand its reach to more customers across the country.
As the Indian e-commerce market continues to grow and evolve, Zepto’s IPO is expected to be a major milestone, providing a benchmark for other companies in the sector. The company’s strong brand presence, growing customer base, and expanding operations make it an attractive investment opportunity for investors, and the listing is expected to be one of the most highly anticipated IPOs of the year.
Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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