Mumbai: Zepto's $1 billion initial public offering (IPO) has moved a step closer to hitting Dalal Street, with market regulator Sebi granting its approval for the issuance, as per details published on its website. The company, which competes with Eternal's Blinkit and Swiggy Instamart in India's $10-11 billion quick commerce market, is targeting a listing by July, according to sources familiar with the matter. Zepto declined to comment on the development.
IPO Structure and Valuation
The bulk of the IPO will be through a fresh issue of shares, it is understood. The startup, last valued at $7 billion, had filed for the IPO through the confidential route in December last year. It will now file updated papers in about six to eight weeks, sources said. Zepto will join two of its listed competitors in the public markets.
Market Conditions and Competitors
Zepto is heading to the bourses amid war-battered volatile markets, which have pushed its fintech peer PhonePe to pause its $1.3 billion IPO. The quick commerce space is heating up, with Zepto's rivals Blinkit and Swiggy Instamart already listed or preparing for listing. The company's move comes as India's quick commerce market continues to grow rapidly, driven by changing consumer preferences for faster deliveries.
Zepto's IPO approval marks a significant milestone for the company, which has been expanding its operations and delivery network across major Indian cities. The fresh funds are expected to be used for expansion, technology upgrades, and working capital requirements. With Sebi's nod, Zepto is now on track to become one of the most anticipated listings in the quick commerce sector this year.
