Blinkit-rival Zepto plans to file for IPO in Q1 2025
What's the story
Zepto, a leading player in the quick-commerce space, is gearing up to file for an Initial Public Offering (IPO) in March or April this year, as per The Economic Times.
The strategic move comes after the company decided to move its holding entity from Singapore to India.
The National Company Law Tribunal (NCLT) will hear Zepto's reverse merger application on January 17, a key step in the transition process.
Strategic discussions
Board meeting to discuss IPO details
On January 19, Zepto has planned a board meeting to discuss the IPO's size and choose bankers for the issue.
The meeting will also discuss resolutions to move the holding entity to India.
As one insider said, "They (Zepto) are knee-deep in the IPO process and the next board meeting will also discuss this."
Clearly, preparations for the public listing are in full swing.
IPO preparations
Journey toward public listing
As part of its journey toward a public listing, Zepto is finalizing independent directors. If successful, it could become the first standalone quick-commerce company to go public.
This would set it apart from competitors like Zomato's Blinkit and Swiggy's Instamart, whose parent companies are already listed.
The Economic Times reported last year that Zepto was in discussions with bankers for a mid-2025 IPO, initially planning to raise at least $450 million.
Financial status
Zepto's financial standing and compliance with FDI regulations
Zepto raised $350 million on November 22, 2024, taking its cash reserves to about $1.4 billion. The massive funding gives the company an edge over competitors and new entrants such as Flipkart Minutes.
Notably, the move to shift the holding company to India comes amid heightened scrutiny over quick-commerce firms' adherence to local foreign direct investment (FDI) norms.