Zepto Files Confidential Draft Papers For Over $1.3 Bn IPO

SUMMARY

Zepto has pre-filed the draft papers for an over $1.3 Bn (around INR 11,682 Cr) IPO with markets regulator SEBI

The Aadit Palicha-led company plans to raise around INR 11,000 Cr through a fresh issue of shares. The IPO is also likely to comprise an offer for sale by early investors.

Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are the bankers for the issue

Quick commerce major Zepto has pre-filed the draft papers for an over $1.3 Bn (around INR 11,682 Cr) IPO with markets regulator SEBI, sources told Inc42.

As reported earlier, the Aadit Palicha-led company plans to raise around INR 11,000 Cr through a fresh issue of shares. The IPO is also likely to comprise an offer for sale by early investors.

Inc42 has reached out to Zepto for comments on the development. The story will be updated on receiving a response.

Zepto received the approval from its shareholders for the IPO at an extraordinary general meeting held on December 23.

Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are the bankers for the issue.

The fundraise comes amid an intense battle in the quick commerce space, where Zepto competes with Swiggy Instamart and Eternal’s Blinkit. Notably, Instamart and Blinkit are flush with funds. Swiggy recently raised INR 10,000 Cr via QIP for its quick commerce push, while Eternal garnered INR 8,500 Cr through its QIP in November 2024.

In October, Zepto raised $450 Mn (around INR 3,955 Cr) in a round, which was a mix of primary and secondary deals, led by US-based pension fund California Public Employees’ Retirement System (CalPERS). The IPO proceeds will give the company a war chest to take on its rivals in the quick commerce market, including Amazon, Flipkart Minutes, and BigBasket.

Following its listing, expected by September next year, the top three quick commerce players in the country would be listed on the stock exchanges. The listing would mark a significant milestone for Zepto, coming within six years of its incorporation in 2020.

Founded by Palicha and Kaivalya Vohra, the company launched in mid-2020 under the brand name KiranaKart, offering deliveries within a 45-minute window using local kirana stores. But within months, the founders pivoted to a dark-store model. In April 2021, a rebranded Zepto was launched in Mumbai to offer 10-minute deliveries. Since then, the company expanded rapidly to boast a presence in most major cities of the country.

The past year saw Zepto take cost-cutting measures after its aggressive expansion spree. However, post the fundraise in October, the company has again been expanding aggressively. It has removed handling and delivery fees for most of its orders.

Overall, Zepto has raised over $2.45 Bn to date from investors like Lightspeed Venture Partners, Y Combinator, Nexus Venture Partners, among others.

On the financial front, the company is yet to file its statements for FY25. In FY24, it reported an operating revenue of INR 4,454 Cr on a net loss of INR 1,249 Cr.