Zepto, a leading quick-commerce startup in India, is preparing for an Initial Public Offering (IPO) in 2025. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly gained prominence by offering ultra-fast grocery deliveries, often within 10 minutes, across major Indian cities.

Company Overview

Zepto’s innovative business model leverages a network of “dark stores”—dedicated fulfillment centers strategically located to ensure swift deliveries. This approach has enabled the company to capture a significant share of India’s burgeoning quick-commerce market. As of 2024, Zepto operates approximately 350 dark stores across India’s top 10 cities.

Recent Funding and Valuation

In August 2024, Zepto secured $340 million in a funding round led by General Catalyst, elevating its valuation to $5 billion. This infusion of capital is intended to bolster Zepto’s balance sheet in anticipation of its planned IPO and to support its goal of achieving profitability before going public.

IPO Details

• IPO Size: Zepto aims to raise between $450 million to $500 million through its IPO.
• Price Band: While the exact price band is yet to be finalized, reports suggest that the IPO price could be around ₹2,750 per share.
• Lot Size: Details regarding the minimum lot size for investors have not been announced.
• Key Dates:
  • IPO Opening Date: Expected in the first week of July 2025.
  • IPO Closing Date: Expected in the first week of July 2025.
  • Listing Date: Anticipated in the second week of July 2025.

Lead Managers and Advisors

Zepto has appointed Axis Capital, Goldman Sachs, and Morgan Stanley as advisors for its IPO, indicating a strategic approach to its public offering.

Use of Proceeds

The funds raised from the IPO are expected to be utilized for:

• Expansion: Scaling operations to additional cities and increasing the number of dark stores to enhance delivery capabilities.
• Technology Enhancement: Investing in technology to improve operational efficiency and customer experience.
• Debt Repayment: Strengthening the company’s financial position by reducing existing liabilities.

Subscription Status

Information regarding the IPO subscription status will be available once the offering opens to investors. Potential investors are advised to monitor official channels and financial news outlets for real-time updates during the subscription period.

Investor Considerations

As Zepto prepares for its IPO, investors should consider the following:

• Market Position: Zepto has established itself as a key player in India’s quick-commerce sector, competing with platforms like Blinkit and Swiggy Instamart.
• Financial Performance: The company is focusing on achieving profitability before its public listing, with approximately 75% of its stores reported to be EBITDA positive as of May 2024.
• Growth Prospects: With plans to expand into additional cities and enhance its technological infrastructure, Zepto is poised for significant growth in the coming years.

Conclusion

Zepto’s upcoming IPO presents an intriguing opportunity for investors interested in the latest IPOs in India. With its innovative business model, rapid growth, and strategic expansion plans, Zepto is well-positioned to make a substantial impact in the public markets. Prospective investors should stay informed about the IPO details, including the price band and subscription status, as the offering date approaches.