Zepto plans to raise $800M via IPO this year
What's the story
Zepto, the Bengaluru-based quick commerce start-up, is gearing up to file its Draft Red Herring Prospectus (DRHP) this year.
The announcement was made by CEO and co-founder Aadit Palicha in an interview with CNBC-TV18.
The company plans to raise around $800 million through its initial public offering (IPO), which is a revision from the previous target of $400-500 million.
Earlier, Moneycontrol reported that Zepto would delay its IPO plans and target market debut in 2026. However, Palicha refuted these claims.
Market strategy
Zepto confident of going public in 2025
Palicha had previously informed media outlets that the company was confident of going public in 2025.
"That's our ambition... of course, capital markets may change, but for now, we're optimistic that if the business continues to perform well, we will go public in calendar 2025," Palicha said at the end of last year.
Regulatory challenges
Maharashtra FDA suspends Zepto's food business license
On a worrying note, Kiranakart Technologies Pvt Ltd, the parent company of Zepto, has had its food business license suspended in Mumbai by the Maharashtra Food and Drug Administration (FDA).
The action was taken after a regulatory inspection found multiple food safety violations at one of Zepto's storage facilities in Dharavi.
Major violations included fungal growth on some food articles and unsanitary conditions like wet and filthy floors.