India’s fast-growing quick-commerce delivery startup Zepto Ltd. is reportedly preparing to file for an initial public offering (IPO) worth around $500 million in Mumbai as early as next week — a significant step toward going public and tapping one of the country’s most competitive tech markets
According to people familiar with the matter, Zepto is working with major investment banks — including Axis Bank, Motilal Oswal Investment Advisors, and the Indian units of Morgan Stanley, HSBC and Goldman Sachs — to submit its draft prospectus through a confidential (SEBI) filing route.
🚀 What Zepto’s IPO Filing Involves
📌 Size & Structure
- Zepto’s IPO is expected to be about $500 million (roughly ₹4,000 crore) in size.
- The offering will likely include a fresh issue to raise new capital and a secondary share sale by early investors looking for partial exits.
💼 Draft Filing Route
- Rather than publicly publishing its draft documents right away, Zepto plans to use a confidential filing process with India’s market regulator (SEBI).
- This pathway gives the company flexibility to refine valuation and terms before releasing a full prospectus to investors.
🌐 Strategic Timing & Use of Proceeds
Zepto’s planned IPO filing comes amid an intensifying competition in India’s quick-commerce sector, where rivals like Blinkit (Zomato), Swiggy Instamart and BigBasket are scaling fast to capture demand for rapid grocery delivery. The Economic Times
The capital raised from the IPO is expected to be used to accelerate expansion, including strengthening the company’s network of dark stores, delivery infrastructure and inventory, helping Zepto compete more effectively across urban markets.
📊 Background on Zepto’s Growth
Zepto has quickly become one of India’s most closely watched startup stories, known for its 10-minute grocery delivery model that has reshaped consumer expectations in e-commerce. The company recently raised about $450 million in private funding at an approximate $7 billion valuation, underscoring strong investor confidence even in a tough funding environment.
Converting to a public company ahead of an IPO filing — a step Zepto took recently — signals its commitment to a public markets debut and readiness to comply with regulatory and governance norms ahead of listing.
🧠 IPO Outlook & Sector Impact
• 📉 Quick-commerce economics: Zepto will need to demonstrate a credible path to profitability — a challenge common in the rapid delivery space noted by analysts — as public market investors dig into unit economics post-IPO filing
• 📈 Market interest: India’s startup IPO pipeline has shown renewed strength in 2025, and Zepto’s $500 M plan could become one of the year’s headline offerings if it progresses smoothly.
• 💼 Investor diversity: With a mix of fresh capital raising and secondary offerings, the IPO could attract both institutional and retail investors, helping Zepto broaden its shareholder base ahead of future growth phases.
