Zepto aims to file a March-April IPO after shifting to India

Zepto is in advanced talks to file draft documents for an initial public offering by March-April, as the quick-commerce firm has now secured Singapore’s approval to move its holding entity to India, people familiar with the plan said.

The company aims to file its draft red herring prospectus by March, ideally, but that could slip to April, the people said.

Meanwhile, the National Company Law Tribunal will hear its reverse merger petition to shift domicile from Singapore to India on January 17. Singapore clearance was a significant part of the process.

The Bengaluru-based company has called a board meeting on January 19, the people informed, likely to consider the IPO size and appointment of bankers for the issue, as well as resolutions to relocate the holding entity to India.

“They (Zepto) are knee deep in the IPO process and this will also be discussed in the next board meeting,” said one person. “A reverse merger needs to be approved and a specific timeline will also be required before the Indian entity can be converted into a public limited company – a process that precedes filing for an IPO.”

Zepto is also in the middle of finalizing independent directors as part of being an IPO-bound firm.

Zepto could become the first independent e-commerce firm to go public. The parents of its top rivals – Zomato and Swiggy which own the Blinkit and Instamart platforms – are already listed. Most of the jump in Zomato’s share price in 2024 is attributed to Blinkit’s performance.

ET first reported on September 7 that Zepto is in talks with bankers aiming to bring about an IPO in mid-2025. Its original plan was to raise at least $450 million, but that could change closer to the filing of draft IPO papers.

Wall Street bankers including Morgan Stanley and Goldman Sachs are in talks with Zepto for its IPO, ET reported. “They will be there with a few more bankers,” said another source familiar with the goings-on at Zepto.

Zepto closed a $350 million round of funding on November 22, taking its cash holdings to around $1.4 billion as it competes against rivals and new entrants like Flipkart Minutes in a fast-growing market.

Its plan to move the holding company to India comes at a time when authorities are scrutinizing the operations of fast-trade companies for compliance with local foreign direct investment rules.

“We are 100% compliant with the country’s FDI rules and have been since day one. But we are also moving fast towards local ownership of our company,” Zepto CEO Adit Palicha told ET after closing the last funding round in November. In about six months, the company raised more than $1 billion — the most by a local startup last year.