MUMBAI: Zepto's $1 billion initial public offering (IPO) is one step closer to hitting Dalal Street, with markets regulator Securities and Exchange Board of India (Sebi) giving it the go-ahead for the issuance, as shown on its website. The company, which competes with Eternal's Blinkit and Swiggy Instamart in India's $10-11 billion quick commerce market (in terms of Gross Merchandise Value or sales before deducting expenses), is targeting a listing by July, according to sources familiar with the matter. Zepto declined to comment.
IPO Structure and Timeline
It is understood that the bulk of the IPO will be through a fresh issue of shares. The startup, last valued at $7 billion, had filed for its IPO through the confidential route in December last year. It will now file updated papers in about six to eight weeks, sources said.
Market Context
Zepto will join two of its listed competitors as it heads to the stock markets amid volatile conditions driven by global trade tensions. This volatility pushed its fintech peer PhonePe to pause its $1.3 billion IPO. The instant delivery market is led by Blinkit with over 40% market share, while Instamart and Zepto each command over 20%, analysts said.
Competition in the space has intensified, with Flipkart and Amazon spending heavily to expand their footprint and gain market share. Over the years, five-year-old Zepto has attracted a wide range of investors, including global funds and local family offices, as appetite to capture a share of the market grew amid rising consumer adoption.
Investors and Backers
General Catalyst, Lightspeed Venture Partners, Haldiram Snacks family office, and Motilal Oswal AMC are among Zepto's backers.
