Zepto IPO: Quick commerce startup Zepto has filed a draft red herring prospectus (DRHP) through a confidential route with Sebi (Securities and Exchange Board of India), according to various media reports.
With the public issue expected next year, the quick commerce is looking to raise about Rs 11,000 crore.
The confidential filing route lets a company submit its draft red herring prospectus to the market regulator without putting it in the public domain, allowing issuers more room to refine the offer structure and disclosures before rolling out the IPO.
The startup is set to list on the exchanges after six years of its inception. Zepto was founded by Aadit Palicha and Kaivalya Vohra in 2020. So, it will become the youngest startup to list on the exchanges, as and when it happens.
The 10-minute delivery platform is working with Axis Bank Ltd., Motilal Oswal Investment Advisors Ltd., and Indian units of Morgan Stanley, HSBC Holdings Plc and Goldman Sachs Group Inc. to submit its draft red herring prospectus through the confidential filing route, according to Bloomberg report.
IPO To Have Fresh Issue And OFS
The proposed IPO is expected to include a fresh issue of shares along with an offer for sale by existing investors. The proceeds are likely to be used to fund expansion, including strengthening its dark-store network and last-mile delivery infrastructure. The final issue size and timing are still under discussion and could change.
Zepto will join Eternal (Zomato) and Swiggy on the exchanges once it is listed next year amid the cut-throat competition in the quick commerce segment. Zepto is among top three quick commerce startups.
Other players like Tata’s BigBasket, Flipkart Minutes, Amazon Now are all adding to the competitive intensity.
The sector has attracted significant interest from global investors such as SoftBank Group Corp. and Temasek Holdings Pte., underscoring confidence in India’s consumption story.
Zepto’s Loss Deepens
As per Zepto’s audited financial statements reviewed by Moneycontrol, the company’s total income rose sharply to Rs 9,668.8 crore in FY25 from Rs 4,223.9 crore in FY24, registering a 129% year-on-year growth. At the same time, losses deepened, with net loss climbing 177% to Rs 3,367.3 crore, compared with Rs 1,214.7 crore a year ago.
