Grocery delivery startup Zepto Ltd. is preparing to file papers for an initial public offering (IPO) of around $500 million in Mumbai, possibly as early as next week, as competition intensifies in India’s fast-growing quick-commerce sector, according to sources familiar with the matter.
The 10-minute grocery delivery platform is said to be working with a consortium of investment banks including Axis Bank, Motilal Oswal Investment Advisors, Morgan Stanley, HSBC, and Goldman Sachs to file its draft red herring prospectus (DRHP) through the confidential filing route.
Zepto IPO Structure and Use of Proceeds
The proposed Zepto IPO is expected to comprise a fresh issue of shares along with secondary stake sales by existing investors. The funds raised from the public issue are likely to be used to fuel expansion plans, including strengthening supply chains, dark store networks, and customer acquisition in key urban markets.
Sources noted that discussions are still ongoing, and the final size, timing, and structure of the IPO may change depending on market conditions.
Bankers and Company Response
While Zepto, along with Goldman Sachs and HSBC, declined to comment on the development, other bankers involved have not responded to queries. The confidential filing route allows companies to keep financial details private until closer to the IPO launch.
Quick-Commerce Sector in Focus
Zepto’s planned listing comes at a time when India’s quick-commerce market is heating up, with rising competition, high capital requirements, and increasing investor focus on scalability and unit economics.
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