Zepto Eyes 2025 IPO, Engages With Major Investment Banks: Report

Zepto, the quick-commerce company that recently secured nearly $1 billion from private investors, has reportedly started engaging with major Wall Street banks, including Morgan Stanley and Goldman Sachs, about a potential initial public offering (IPO).

The Mumbai-based startup is also in discussions with domestic investment banks as it plans for a possible share listing by August next year, according to The Economic Times report citing sources.

The timing of Zepto's initial public offering (IPO) will hinge on its relocation from Singapore to India, according to sources in the report. Zepto is reportedly moving its domicile back to India, joining many Indian startups that are making similar transitions.

“The IPO timeline will depend on the flipping back process, but their aspiration is to list by next year,” one source noted in the report.

Zepto’s rival, Swiggy, is preparing for a $1.25 billion IPO later this year, while Blinkit, another major competitor, is owned by the publicly listed Zomato.

“Zepto has been working very closely with Morgan Stanley… The board has told the company to test the market appetite for an IPO,” said one insider. The company is also in discussions with domestic investment banks, given its clear intent to go public, according to another source in the report.

The current plan involves raising approximately $450 million by issuing new shares alongside an offer for sale from existing investors.

Quick commerce, a rapidly growing segment within India’s e-commerce sector, is attracting significant attention due to rising consumer demand for speedy deliveries. Tata-owned BigBasket is transitioning to a full-scale quick commerce model, while Flipkart has launched its quick-delivery service, Minutes, and Amazon plans to introduce its own quick service in India by 2025.

This rapid growth is also drawing investor interest. Last week, Zepto secured $340 million from new investors, including General Catalyst, Mars Growth Capital, and Epiq Capital, bringing its total funding over the past two months to approximately $1 billion.

Also Read: Here's How Much Tata Sons' N Chandrasekaran's Salary Rose In FY24