Quick commerce startup Zepto is preparing to enter the stock market with a potential IPO worth over ₹11,000 crore. The company is reportedly filing its draft papers with SEBI through the confidential route.
Quick Commerce Startup Zepto Plans Mega IPO, DRHP Filing Soon
Mumbai: Zepto, which is giving Zomato and Swiggy tough competition on the streets in the food and grocery delivery sector, could now challenge the two giants in the stock market as well. This startup company, which delivers everyday essentials in 10 minutes, is now preparing to launch its IPO. According to market reports, Zepto is quietly filing its Draft Red Herring Prospectus (DRHP) with SEBI on Friday.
According to sources, Zepto's IPO could be worth around ₹11,000 crore or more. However, the company has not yet made any official announcement in this regard. All the information that is coming to light is from market sources. If this IPO materializes as per the estimates, it will be considered one of the largest startup IPOs in recent years.
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If the IPO is approved by SEBI, Zepto will join the list of new startup companies to be listed on the Indian stock market. Upon entering the market through the IPO, Zepto will be directly compared to its rivals Zomato and Swiggy, which are already listed on the stock exchange. The company is reportedly planning to enter the stock market next year.
Sources say that Zepto is adopting a 'confidential route' for its IPO. Under this process, the company can have initial discussions with SEBI without making its draft documents public. This method has become quite popular in recent years among companies that want flexibility in timing and valuation depending on market conditions and prefer to seek initial suggestions from the regulator.
Zepto's current valuation is estimated at around US$7 billion. The company has so far raised a total of US$1.8 billion, or approximately ₹16,000 crore, in funding. Zepto achieved unicorn status in August 2023 when its valuation surpassed $1 billion. The company is backed by several major global investors.
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Zepto was founded by Aadit Palicha and Kaivalya Vohra, who dropped out of Stanford University to start the company. The two young entrepreneurs embraced the concept of delivering groceries in 10 minutes, which quickly gained popularity in Indian metropolitan areas. Today, Zepto provides its services in several major cities across the country.
After the IPO, Zepto will face the challenge of not only expanding its business but also maintaining investor confidence. Experts believe that Zepto's entry into the market will intensify competition in the quick commerce sector. This could also put pressure on companies like Zomato and Swiggy, which are already working to strengthen their position in this segment.
