Quick commerce unicorn Zepto may file its draft IPO papers in 7-8 days

Quick commerce (qcom) unicorn Zepto is likely to file the draft papers for its upcoming initial public offering (IPO) in the next 7-8 days, people in the know told Business Standard. The company is eyeing going public next year and is expected to submit its draft prospectus through a confidential route.

 

The size of the IPO is likely to be about $500 million, according to a Bloomberg report. The company is reportedly working with Axis Bank Ltd, Motilal Oswal Investment Advisors Ltd, and the India-based units of Morgan Stanley, HSBC Holdings Plc, and Goldman Sachs Group Inc for submission of its draft prospectus. 

The offer is expected to include a fresh issue as well as secondary share sales by existing investors, the report added. The company will use a majority of its proceeds to expand its qcom operations as competition in the sector is heating up.

 

As part of its IPO preparations, the Bengaluru-based company also recently converted itself from a private entity to a public limited company. According to documents filed with the Ministry of Corporate Affairs, the company has changed its name from Zepto Private Limited to Zepto Limited.

 

Zepto has been aggressively raising funding in the past few months. Last year, it raised $665 million in June, $340 million in August, and $350 million in November. This year, in October, it announced the closure of approximately a $450 million funding round at a $7 billion valuation.