The upcoming IPO calendar just got more exciting- Grocery delivery firm Zepto is reportedly preparing to file draft papers for an initial public offering of about $500 million in Mumbai as early as next week, according to a Bloomberg report citing people familiar with the matter. The company is expected to submit its draft prospectus through a confidential route, the report added.
According to Bloomberg, the company is said to be working with Axis Bank, Motilal Oswal Investment Advisors and the Indian units of Morgan Stanley, HSBC and Goldman Sachs to submit its draft prospectus through the confidential filing route. The proposed IPO is expected to include a mix of a fresh issue and secondary share sales by existing investors, with proceeds likely to be used to fund the company’s expansion, as per the Bloomberg report. Deliberations are ongoing, and details such as the size and timing of the offering could still change, the report said.
Competition intensifies in quick commerce
India’s quick-commerce market has expanded rapidly as startups race to build dense warehouse networks and delivery fleets to meet rising demand for groceries and household essentials. The sector has attracted billions of dollars from global investors, including SoftBank Group and Temasek Holdings, making it one of the most closely watched segments in India’s consumer internet economy.
Zepto competes with Amazon’s India unit as well as domestic players such as Swiggy, Zomato and the Tata Group’s BigBasket.
Recent funding and valuation
The proposed IPO follows Zepto’s $450 million fundraising in October, which valued the company at around $7 billion, according to Bloomberg. Representatives for Zepto, Goldman Sachs and HSBC declined to comment on the report, while other banks did not respond to Bloomberg’s requests for comment.
As per an Entracker report, Aadit Palicha, Zepto CEO and co-founder, said that the firm recorded 1.7 million daily orders as compared to five lakh daily orders five quarters ago. As per CNBC-TV18, Zepto raised $665 million in June 2024, valuing the company at $3.6 billion, then $340 million in August, which lifted its valuation to $5 billion, and another $350 million from domestic investors in November 2024.
The Entracker report also stated that the company registered a turnover of Rs 11,110 crore in FY25 and a revenue of Rs 4,454 crore in FY24.
