Zepto preparing to confidentially file draft IPO papers tomorrow: Details

Quick commerce startup Zepto is preparing to confidentially pre-file its draft red herring prospectus (DRHP) on December 26 as it plans to go public next year, Moneycontrol reported.

 

According to the report, Zepto has completed its pre-filing work and is likely to inform stakeholders about the move tomorrow.

 

On December 16, Business Standard reported that the company was planning to submit its draft IPO papers in 7-8 days using the confidential filing route. Founded nearly six years ago, Zepto is likely to become one of the youngest startups in India to launch an initial public offering.

Zepto IPO to raise $500 mn

According to a Bloomberg report, Zepto’s IPO is expected to raise around $500 million. The company is said to be working with investment banks including Axis Bank, Motilal Oswal Investment Advisors, and the India arms of Morgan Stanley, HSBC and Goldman Sachs.

 

The public issue is likely to include both fresh shares and an offer for sale (OFS) by existing investors. A large part of the funds raised is expected to be used to expand Zepto’s quick commerce business, as competition in the sector intensifies.

 

As part of its IPO preparations, the Bengaluru-based firm recently changed its status from a private company to a public limited company. Official records show that its name has been changed from Zepto Private Limited to Zepto Limited.

Zepto actively raising funds

Zepto has also been actively raising funds. In 2023, it secured $665 million in June, $340 million in August and $350 million in November. In October this year, the company announced it had raised around $450 million in a funding round that valued it at $7 billion.

 

After the company goes public, it will join the likes of rivals Eternal, which runs Blinkit, and Swiggy, which operates Instamart.