Zepto Prepares for IPO in FY25: Picks Axis Capital, Goldman Sachs, and Morgan Stanley as Advisors

Zepto Prepares for IPO with Key Advisors:

Zepto, a delivery startup founded by Aadit Palicha and Kaivalya Vohra, has selected Axis Capital, Goldman Sachs, and Morgan Stanley as advisors for its planned initial public offering (IPO) in FY25, according to a report by Moneycontrol. The IPO is expected to raise between $450-500 million, with the listing likely scheduled for August 2025, in the second half of the fiscal year.

IPO Plans and Valuation:

Sources indicate that while the exact structure of the IPO, including any potential Offer for Sale (OFS), remains uncertain, the valuation is currently being assessed. The startup, which was last valued at $5 billion in August 2024 after a funding round of $340 million, is preparing to shift its base from Singapore to India to comply with local listing regulations. CEO Aadit Palicha has stated that this transition will be completed soon.

Pre-IPO Funding Surge:

Zepto has recently secured substantial funding ahead of its IPO. On August 30, 2024, it closed a $340 million financing round led by US-based venture capital firm General Catalyst. This followed a $665 million pre-IPO funding round just two months prior, bringing the company's valuation to $5 billion. New investors, including Dragon Fund and Epiq Capital, participated in the latest round while existing investors like StepStone, Lightspeed, DST, and Contrary also increased their stakes.

India’s Quick Commerce Market:

Founded in April 2021 during the COVID-19 pandemic, Zepto quickly capitalized on the growing demand for online delivery of daily staples in major Indian cities. The quick-commerce market in India grew by 77% in 2023, reaching a gross merchandise value (GMV) of $2.8 billion, according to consulting firm Redseer. However, analysts caution that the market's potential may be limited to metro cities, and companies like Zepto will need to expand into non-metro areas and enhance their technological capabilities to sustain growth.

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Looking Ahead:

With its rapid growth and significant backing from prominent investors, Zepto is positioning itself for a major presence in the public market. The IPO will be a key step in its expansion strategy, providing the capital needed to strengthen its market position amid rising competition.

[Disclaimer: This content is intended for informational purposes only and does not constitute financial advice. Investors are advised to conduct their own research or consult with a financial advisor before making any investment decisions.]