Quick Commerce Startup Zepto May Submit Draft IPO Papers in 7–8 Days

According to various media reports, Zepto, a quick commerce (qcom) unicorn, is expected to submit the draft documents for its impending initial public offering (IPO) within the next seven to eight days, as reported by Business Standard. The business plans to go public the following year and is anticipated to file its draft prospectus in a secret manner.

According to a Bloomberg article, the IPO is expected to be around $500 million in size. According to reports, the company is collaborating on the submission of its draft prospectus with Axis Bank Ltd, Motilal Oswal Investment Advisors Ltd, and the India-based divisions of Morgan Stanley, HSBC Holdings Plc, and Goldman Sachs Group Inc.

How Zepto is Planning its Listing?

Media reports further indicated that the offer is anticipated to involve both secondary share sales by current investors and a new issuance. Since the industry is becoming more competitive, the corporation plans to use the majority of its profits to grow its QCOM operations. The Bengaluru-based business recently changed its legal status from a private to a public limited company as part of its IPO preparations.

The company has changed its name from Zepto Private Limited to Zepto Limited, according to records submitted to the Ministry of Corporate Affairs. In recent months, Zepto has been actively seeking funds. It raised $340 million in August, $665 million in June, and $350 million in November of last year. It declared in October of this year that it had closed a roughly $450 million investment round at a $7 billion value.

Quick Commerce New Battleground in Indian Market

Swiggy's shareholders approved its INR 10,000 crore fundraising earlier this week, enabling the rapid commerce and food delivery company to increase its war chest for the hyperlocal turf battle. Media sources state that at a discounted issue price of INR 375 per unit, the Sriharsha Majety-led company's QIP was oversubscribed 4.5 times.

With the fundraising, Swiggy's current cash corpus is at INR 17,000 crore, compared to INR 18,314 crore for Zomato and Blinkit parent company Eternal as of the September quarter. Investors may view the cash runway as a prelude to gaining market share, as evidenced by the fact that other firms, such as Zepto, are also earning larger cheques at higher valuations.

A player with greater balance-sheet power can conduct deeper and longer promotions, which frequently influences market behaviour. These patterns demonstrate how, following a brief period of discipline, the industry has returned to expansion mode.