Zepto to file $500M IPO in India next week
What's the story
Zepto, a significant player in the grocery delivery space, is gearing up to file for an initial public offering (IPO) worth some $500 million. The filing could happen as early as next week, according to Bloomberg. The move comes amid intensifying competition in India's fast-growing quick-commerce market.
Filing details
Zepto's IPO process and potential use of proceeds
Zepto is working with Axis Bank, Motilal Oswal Investment Advisors, and the Indian arms of Morgan Stanley, HSBC Holdings, and Goldman Sachs Group to file its draft prospectus through a confidential route. The company's IPO offering is likely to include a fresh issue as well as secondary share sales by existing investors. The proceeds from these sales are expected to be used for expansion purposes.
Market standing
Zepto's position in India's quick-commerce sector
India's quick-commerce sector is witnessing rapid growth, with start-ups racing to set up dense networks of warehouses and delivery fleets. Zepto competes with Amazon's unit and homegrown firms such as Swiggy, Zomato, and Tata Group's BigBasket. The company's proposed IPO comes after a $450 million fundraising round in October that valued it at $7 billion.