The quick commerce unicorn is set to file confidentially with SEBI. It targets a valuation over $7 billion amid the sector’s boom
The race for dominance in India’s quick commerce sector is heating up. Mumbai-based unicorn Zepto is reportedly finalising its public market plans. Sources say the company will file its draft prospectus with the Securities and Exchange Board of India (SEBI) next week. The proposed Zepto IPO aims to raise approximately $500 million (₹4,200 crore). This move follows a robust funding year for the startup. Its valuation recently soared to $7 billion. Consequently, it is now a formidable challenger to listed rivals like Zomato and Swiggy.
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The Confidential Route
Zepto is likely to choose a unique path for this listing. Reports suggest it will opt for a “confidential filing” route. This mechanism allows the company to submit documents to SEBI privately. Therefore, sensitive financial data remains hidden from the public initially. Critical metrics like dark store unit economics will stay secret. Competitors cannot view these numbers until the final approval stage. This approach is highly tactical. It benefits high-growth tech firms in competitive markets. Thus, the Zepto IPO process protects vital trade secrets for as long as possible.
Bankers and Use of Proceeds
The company has enlisted top financial experts for the listing. The consortium includes domestic leaders like Axis Bank and Motilal Oswal. Global giants such as Morgan Stanley and Goldman Sachs are also involved. The capital raised from the Zepto IPO will fund aggressive expansion. Zepto plans to double its dark store network soon. It will target both Tier-1 and Tier-2 cities. Additionally, the issue will include an Offer for Sale (OFS). This provides a partial exit for early investors. They have backed the firm since its inception and now seek returns.
Riding the Quick Commerce Wave
The timing of this listing is strategic. The quick commerce sector is witnessing a massive surge. Revenue is projected to touch ₹11,110 crore for FY25. Zepto has proven that 10-minute delivery is a scalable model. It is not just a passing pandemic trend. The company has successfully narrowed its losses recently. Simultaneously, it grew its top line by over 150 per cent. This improved financial health is a key selling point. Institutional investors are currently hungry for such high-growth stocks. Hence, the Zepto IPO is expected to generate significant interest.
The Hinge Point
The $500 million size is impressive, but the valuation multiple is the real story. Zepto is seeking a price near the top of the industry range. It may demand a richer multiple than Zomato. This aggressive pricing for the Zepto IPO relies on its “pure-play” status. Unlike its rivals, Zepto focusses solely on quick commerce. Zomato and Swiggy are diversified food delivery giants. Investors must decide if this singular focus warrants a premium. Alternatively, the lack of a safety net could make it a riskier bet.