Zepto, a prominent quick-commerce startup, has enlisted Axis Capital, Goldman Sachs, and Morgan Stanley as advisors for its anticipated initial public offering (IPO), slated for the second half of fiscal year 2025. According to sources cited by Moneycontrol, the IPO is expected to take place around August 2025, though the companies involved have not yet confirmed the development.
The Singapore-headquartered firm aims to raise between $450 million and $500 million through the IPO. However, specific details regarding the offer for sale (OFS) remain unclear at this stage. Zepto’s valuation, which was last recorded at $5 billion in August 2023 following a $340 million funding round, is currently being reassessed ahead of the listing.
Founded by Aadit Palicha and Kaivalya Vohra in April 2021, Zepto has seen significant growth within India’s rapidly expanding quick-commerce sector. In August 2023, Zepto secured $340 million in follow-on funding led by General Catalyst, building on a $665 million pre-IPO round raised just two months earlier. The August round also saw participation from new investors such as Dragon Fund and Epiq Capital, alongside existing backers like StepStone, Lightspeed, DST, and Contrary.
As part of its IPO preparations, Zepto is planning to shift its headquarters from Singapore to India, a move that CEO Aadit Palicha has confirmed is already in progress. The company reached unicorn status in August 2022 after raising $200 million at a valuation of $1.4 billion.
India’s quick-commerce market saw impressive growth in 2023, expanding by 77% to reach a gross merchandise value (GMV) of $2.8 billion, capturing 5% of the overall e-commerce market, according to Redseer. However, analysts like Karan Taurani from Elara Capital have expressed caution, suggesting that the sector’s growth potential may be limited to metro cities. Taurani also highlighted the importance of substantial capital and technological investment for companies like Zepto to expand beyond metropolitan areas and sustain long-term growth.
Summary:
- Zepto plans to launch its IPO in August 2025, aiming to raise between $450 million and $500 million.
- The company is in the process of relocating its headquarters from Singapore to India ahead of the IPO.
- India’s quick-commerce market has grown significantly but may face limitations in metro city penetration, requiring further investment to expand.