Grocery delivery startup plans confidential Mumbai filing as rivalry intensifies
Quick commerce grocery delivery startup Zepto is gearing up to file draft papers for an initial public offering of around USD 500 million in Mumbai, potentially as early as next week, people familiar with the matter said, as rivalry intensifies in the country’s fast-growing quick-commerce segment, Bloomberg reported.
The company is working with Axis Bank, Motilal Oswal Investment Advisors and Indian arms of Morgan Stanley, HSBC Holdings Plc and Goldman Sachs Group Inc. to submit its draft red herring prospectus under a confidential filing route, the sources said, declining to be named as the discussions are private.
The IPO is expected to comprise a mix of fresh shares and secondary stake sales by existing investors, with funds likely to be used to support business expansion, the people said. They added that talks are ongoing and the size and timing of the offering could still change.
Zepto, Goldman Sachs and HSBC declined to comment, while the other banks did not respond to requests for comment.
India’s quick-commerce sector has been expanding rapidly, with startups racing to build dense warehouse networks and last-mile delivery capabilities to cater to rising demand for groceries and daily essentials. The sector has attracted billions of dollars from global investors such as SoftBank Group Corp. and Temasek Holdings Pte., turning India into a key testing ground for ultra-fast delivery models.
Zepto competes with Amazon.com Inc.’s India unit as well as domestic players including Swiggy, Zomato and Tata Group-owned BigBasket. The planned listing comes after Zepto raised USD 450 million in October, valuing the company at about USD 7 billion.
