Quick commerce firm Zepto is set to list on the stock market in July, having filed updated draft papers with SEBI.
According to the documents filed with SEBI, Zepto will issue new shares worth ₹8,010 crore through this IPO. It could become the first pure-play quick commerce company to be listed on the Indian stock market, making it a historic move.
In addition to the fresh equity shares, the IPO will also include an Offer for Sale (OFS). Under this, the company's existing investors will sell 11.3 crore of their shares, allowing early investors to partially exit their stake.
Key investors participating in the Offer for Sale include major firms like Nexus Venture Partners, US-based Contrary Capital, Kaiser Permanente, and Dubai's Razor Capital. These investors had funded the company in its early stages.
Zepto first applied for the IPO under the confidential pre-filing route in December 2023. According to media reports, the company received approval from SEBI in May, which has now accelerated the listing process.
The company has clarified that the capital raised from the IPO will be primarily used for business expansion. Zepto plans to expand its network of 'dark stores' across the country.
The company states that a major portion of the amount raised from the new shares will be invested in business expansion. Zepto wants to increase the number of dark stores in its existing and new markets.
Dark stores are small warehouses from where goods are quickly delivered to customers. As of March 31, 2024, Zepto had 1,139 dark stores across the country.
Furthermore, the funds will also be used to strengthen the technological framework, invest in cloud infrastructure, and boost marketing activities.
Zepto's listing could increase investor interest in the quick commerce sector. It will also reflect the future and growth potential of this sector. If everything goes according to plan, the company could make its debut on Dalal Street as early as next month, in July.
This IPO will be a significant event not just for Zepto but for the entire Indian startup ecosystem, potentially encouraging other new companies to enter the market.
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