Zepto Secures SEBI Approval for IPO, Set to Raise ₹8,000-9,000 Crore, Say Sources

Quick commerce startup Zepto has recently gained approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). Following this approval, Zepto is set to file an updated draft red herring prospectus (DRHP) within the next six to eight weeks. The Bengaluru-based company had initially filed a confidential DRHP in December with an anticipated IPO size ranging from Rs 11,000 to 12,000 crore, predominantly based on primary issuance. It is important to note that the definitive size and pricing of the IPO remain undecided and may be subject to revisions.

Grey market sentiment around Zepto’s potential IPO appears to be cautiously optimistic. As institutional investors have begun engaging with the company in pre-IPO roadshows, there seems to be a growing interest from market participants. The company has signaled its ambition for post-tax profitability by fiscal 2029 while maintaining a growth trajectory of 25-30% quarter-on-quarter. Investors are keenly watching market conditions and sentiment leading up to the IPO launch, as it may provide insight into the potential valuation and performance of the stock upon its listing.

For Indian investors, Zepto’s forthcoming IPO represents both significant opportunity and risk. As the quick commerce segment gains traction, driven by changing consumer preferences, an investment in Zepto could align with future growth trends in the sector. However, investors should remain cognizant of the fluctuating market conditions and the evolving nature of the company’s financial projections. Engaging with institutional investor roadshows could be a vital step in assessing the long-term viability of the investment, making it essential for retail investors to stay informed about developments leading up to the IPO.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)