The quick commerce startup Zepto is looking to pre-draft red herring prospectus (DRHP) on December 26 via the confidential route, according to Moneycontrol report. If everything goes as planned, the company
will list early next year, marking the entry of one of the youngest startups in the stock exchanges.
The MC report stated that the Zepto’s pre-filing work is done and it will likely inform all the stakeholders about the filing on December 26.
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 becomes the youngest startup to list on the exchanges, the MC reported.
Earlier, a Bloomberg report said that Zepto is preparing to file draft papers for an initial public offering of about $500 million (around Rs 4,000 crore).
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.
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.
