Zepto likely to choose confidential route for IPO, filing expected next week: Report

Quick-commerce platform Zepto is preparing to file for an initial public offering of about $500 million as early as next week, seeking to tap India’s buoyant IPO market, according to a Bloomberg report.

The 10-minute delivery company is working with Axis Bank, Motilal Oswal Investment Advisors and the local units of Morgan Stanley, HSBC and Goldman Sachs to submit its draft prospectus through the confidential filing route, the report said.

Zepto is expected to use the IPO proceeds primarily to fund expansion, including investments in dark stores, delivery infrastructure and inventory.

The Bengaluru-based company’s public market plans come after an aggressive fundraising spree over the past 18 months, during which it has raised close to $2 billion. In October, Zepto raised about $450 million (roughly Rs 4,000 crore) in a round led by California Public Employees’ Retirement System (CalPERS) and General Catalyst.

The latest funding has pushed Zepto’s valuation to about $7 billion.

Zepto operates in a fiercely competitive quick-commerce market that includes Swiggy, Zomato, Tata Group–owned BigBasket, Flipkart Minutes and Amazon Now. Eternal’s Blinkit remains the market leader, while Swiggy’s Instamart and Zepto have been alternating between the second and third positions.

According to a Moneycontrol report, Blinkit, Swiggy and Zepto together are sitting on more than Rs 40,000 crore in cash, which is being deployed to accelerate dark-store expansion and strengthen last-mile delivery capabilities across key urban markets.