Zepto files confidential IPO papers for Rs 11,000 crore IPO

MUMBAI: Zepto has filed draft IPO papers seeking to raise up to Rs 11,000 crore (around $1.2 billion) with markets regulator Securities and Exchange Board of India (SEBI) through the confidential route, people aware of the matter said.

The bulk of the IPO, it is understood, will be a fresh issue of shares. A clutch of the startup’s early investors will also be selling some stakes. Zepto declined to comment. The General Catalyst and Lightspeed backed startup, founded in 2021 by college dropouts Aadit Palicha and Kaivalya Vohra rivals Eternal’s Blinkit and Swiggy’s Instamart in the quick commerce market that analysts at Morgan Stanley said could grow to $57 billion by 2030. Zepto and Instamart trail Blinkit by a wide margin which leads the space with a near 50% share. The 10-minute delivery market in India has expanded beyond groceries to cover a host of categories including jewellery, small appliances, toys, electronics accessories and occasionally even iPhones on the back of rapid adoption by consumers, many of whom got used to online shopping during the pandemic.

In October, loss-making Zepto closed a fresh $450 million in pre-IPO funding round led by US pension fund Calpers at a valuation of $7 billion, about 40% higher than its last valuation of $5 billion. Mumbai born Zepto, now based in Bengaluru, has raised about $2 billion in funding in all. The company had turned unicorn in August 2023 after investors infused over $200 million into the firm at a valuation of $1.4 billion. Zepto joins a clutch of companies including PhonePe, Flipkart and Oyo which are targeting a public listing next year.

India’s booming IPO market has allowed startups to get listed and give exit to investors. Lenskart, Meesho, Urban Company, Pine Labs, Physicswallah and Groww are among big players that debuted on the exchanges this year.