Zepto IPO: Delivery start Zepto has chosen Axis Capital, Goldman Sachs and Morgan Stanley as advisors for its initial public offering (IPO) planned for FY25, Moneycontrol reported citing sources.
Zepto, Capital of the Axis, Goldman Sachs and Morgan Stanley did not respond to inquiries, the report said.
Livemint could not independently verify the development.
What we know so far
A source told the publication that the IPO It is planned to start around August 2025, in the second half of fiscal year 2025.
Another source told MC that the Singapore-based company is looking to raise between $450 million and $500 million through the listing. They added that the offer for sale (OFS) is “not yet clear,” according to the report.
Valuation The report also notes that the possibility of going public is still being worked on. The startup was last valued at $5 billion in August, after raising $340 million in funding.
It is worth noting that in order to list in India, Zepto would have to move its headquarters from Singapore to the country and its CEO… Aadit Palicha He has said in interviews that the company will complete this process soon.
Increase in pre-IPO financing
On August 30, Zepto got the follow-up $340 million in funding The US venture capital firm General Catalyst, which led it, raised its valuation to $5 billion just two months after raising a $665 million pre-IPO funding round.
New investors Dragon Fund and Epiq Capital joined the August round, while existing investors StepStone, Lightspeed, DST and Contrary increased their stakes.
Zeptowhich is preparing to go public next year, earned its coveted unicorn status a year ago when it raised $200 million at a $1.4 billion valuation.
India’s fast-paced trading space
Palicha and Kaivalya Vohra founded Zepto in April 2021, when COVID-19 Curfews had made residents of India’s big cities accustomed to buying basic daily necessities online.
India fast trade The market is expected to grow 77 per cent by 2023 to reach $2.8 billion in gross merchandise value (GMV), accounting for 5 per cent of India’s overall e-commerce market, according to consultancy firm Redseer.
However, analysts are concerned that the potential for fast commerce will be limited to metro cities, which is likely to hurt players in the long run. “In the next 2-3 years, penetration in metro cities may hit a plateau,” Karan Taurani, an analyst at Elara Capital, told Mint, adding that rising competition in the segment will require companies to be capital-rich and invest sufficiently in expanding in non-metro cities as well as in technological capabilities.
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