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. 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, marking a major milestone for the company.
The move is seen as a significant step for Zepto, which has been rapidly expanding its operations in the Indian market. The company, which was founded in 2021, has been growing at a breakneck pace, with its valuation increasing exponentially over the past year. The IPO is expected to provide a major boost to the company’s growth plans, enabling it to invest in new technologies, expand its logistics network, and enhance its customer experience.
Zepto’s decision to go public is also seen as a testament to the growing demand for quick commerce services in India. The company’s platform allows customers to order groceries and other essential items, which are then delivered to their doorstep within a matter of minutes. The service has gained immense popularity, particularly among urban consumers who are looking for convenient and hassle-free shopping experiences.
The IPO is expected to be one of the largest in the Indian market this year, with several investors, including venture capital firms and private equity players, expected to participate in the offering. The company’s valuation is expected to be around $5-6 billion, making it one of the most valuable startups in the Indian market.
The funds raised through the IPO will be used to fuel Zepto’s expansion plans, which include investing in new technologies, such as artificial intelligence and machine learning, to enhance its logistics and supply chain operations. The company also plans to expand its network of dark stores, which are essentially warehouses that are used to store and dispatch products to customers.
Zepto’s growth plans are also expected to create new job opportunities in the market, particularly in the logistics and supply chain sectors. The company has already created thousands of jobs across the country, and the IPO is expected to further accelerate its hiring plans.
The company’s decision to go public is also seen as a positive development for the Indian startup ecosystem, which has been witnessing a surge in funding and investor interest over the past year. The IPO is expected to provide a major boost to the ecosystem, demonstrating the potential for Indian startups to scale and grow into large, successful businesses.
In addition to Zepto, several other Indian startups are also planning to go public in the coming months, including companies such as Byju’s, Swiggy, and Zomato. The IPOs are expected to provide a major boost to the Indian market, demonstrating the growing maturity and sophistication of the country’s startup ecosystem.
In conclusion, Zepto’s decision to file for a $1.3 billion IPO is a significant development for the Indian startup ecosystem. The company’s growth plans are expected to create new job opportunities, drive innovation, and demonstrate the potential for Indian startups to scale and grow into large, successful businesses. As the company prepares to go public, it will be interesting to see how the market responds to its IPO, and how it plans to use the funds raised to fuel its expansion plans.
News Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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