Our Bureau
Bengaluru
Bengaluru-based quick-commerce startup Zepto is gearing up for a significant milestone in its journey by preparing to launch an Initial Public Offering (IPO). The company is expected to file its draft red herring prospectus (DRHP) in March or April 2025, marking a pivotal moment for the rapidly growing sector of on-demand delivery services in India. This move comes on the heels of Zepto securing approval from Singapore to shift its holding entity to India, a strategic decision aimed at aligning with local regulatory frameworks and enhancing operational efficiency.
The decision to relocate its holding entity from Singapore to India is not merely a logistical adjustment; it reflects Zepto’s commitment to the Indian market and its long-term growth strategy. By becoming an Indian entity, Zepto can better navigate local regulations, attract domestic investors, and strengthen its brand presence in a competitive landscape. The National Company Law Tribunal (NCLT) is scheduled to hear Zepto’s application for a reverse merger on January 17, which is crucial for this transition.
Following the NCLT hearing, Zepto’s board will convene on January 19 to discuss critical aspects of the IPO, including determining the size of the offering and appointing investment bankers to manage the process. Zepto has been making waves in the quick-commerce space since its inception, leveraging technology and logistics to offer rapid delivery services across major cities in India. With a current valuation exceeding $5 billion, the company has positioned itself as a formidable player in an industry that has gained immense popularity during the pandemic.
In recent months, Zepto has successfully raised $350 million in funding from prominent investors, bringing its total cash reserves to approximately $1.4 billion. This financial backing not only strengthens its balance sheet but also provides the necessary capital for expansion initiatives and technological advancements.
As Zepto prepares for its IPO, industry analysts are closely monitoring developments within the quick-commerce sector. The success of this offering could pave the way for other startups in similar domains for going public.
