Zepto kicks off IPO process: E-commerce startup files draft papers with Sebi: Rs 11,000 crore issue planned for next year

NEW DELHI: Popular quick e-commerce firm Zepto filed its preliminary papers on Saturday with Securities Exchange Board of India (Sebi), aiming to raise Rs 11,000 crore via initial public offering (IPO).The company, founded by Stanford university dropouts, is using a confidential route for its stock market debut planned for next year, according to officials cited by PTI . This move could make Zepto one of India's youngest listed startups, joining competitors Zomato and Swiggy on the exchanges.The company has submitted "the pre-filed draft red herring prospectus with Sebi and the stock exchanges...in relation to the proposed initial public offering of its equity shares on the main-board of the stock exchanges," as per the officials quoted.The confidential pre-filing approach is becoming popular among companies wanting more flexibility in their IPO planning. It helps them respond better to market conditions before going public. Zepto's move follows successful listings of its rivals - Zomato (with Blinkit) in 2021 and Swiggy (with Instamart) in November 2024.The company has strong financial backing from big investors. It's currently valued at $7 billion and has raised $1.8 billion (about Rs 16,000 crore) since it started. In October , it got $450 million from CalPERS. The company became a unicorn in August 2023 after raising $200 million, reaching a $1.4 billion valuation.Started by Aadit Palicha and Kaivalya Vohra, Zepto has grown quickly with its 10-minute grocery delivery service across major Indian cities. By September this year, the company was running over 900 dark stores. It spent Rs 1,000-1,100 crore in operations and achieved gross sales of $3 billion (about Rs 26,000 crore).