Ahead of IPO, Zepto Pushes $250 Million Stake Sale by Investors
Zepto, the quick commerce major, is reportedly pushing its existing investors to offload stakes worth $250 million ahead of its highly anticipated initial public offering (IPO) later this year. The move aims to boost domestic shareholding, which will provide a fresh injection of capital to the company as it prepares to go public.
According to sources, Zepto is seeking to complete the secondary deals at a valuation of just over $5 billion, which is significantly higher than its previous valuation of around $3.5 billion in July 2022. This suggests that the company is confident about its growth prospects and is looking to capitalize on its success in the rapidly growing quick commerce space.
Zepto’s decision to push investors to offload stakes comes at a time when the company is preparing to list on the stock exchanges. The IPO is expected to be a major event in the Indian startup ecosystem, with investors eagerly awaiting the company’s debut on the public markets.
Zepto’s growth story has been nothing short of meteoric. Founded in 2020 by Kaustubh Sahoo and Aarav Tandon, the company has quickly become one of the leading players in the quick commerce space, with a strong presence in over 500 cities across India. Zepto has disrupted the traditional e-commerce model by focusing on same-day delivery and instant gratification, which has resonated well with consumers who are increasingly looking for convenience and speed.
The company’s success has been driven by its innovative business model, which involves using a network of dark stores and micro-fulfillment centers to offer a wide range of products, including fresh produce, packaged goods, and other essentials. Zepto’s ability to offer same-day delivery and instant gratification has been a major differentiator, allowing it to stand out in a crowded market.
Zepto’s financials have also been impressive, with the company reporting revenues of over $200 million in the last fiscal year. The company’s revenue growth has been driven by its expanding user base, which has grown by over 50% in the last six months alone.
The company’s decision to push investors to offload stakes comes at a time when the Indian startup ecosystem is witnessing a significant surge in IPO activity. Several high-profile startups, including Paytm, Nykaa, and Glenmark Life Sciences, have listed on the stock exchanges in recent months, raising billions of dollars in the process.
Zepto’s IPO is likely to be one of the most highly anticipated events in the Indian startup ecosystem this year. The company is expected to list on the stock exchanges in the next few months, with reports suggesting that it may raise anywhere between $1 billion to $2 billion in the process.
The success of Zepto’s IPO will have significant implications for the Indian startup ecosystem. The company’s listing will provide a benchmark for other startups looking to go public, and it will also provide a fresh influx of capital to the ecosystem.
In conclusion, Zepto’s decision to push investors to offload stakes worth $250 million ahead of its IPO is a significant development in the Indian startup ecosystem. The move is aimed at boosting domestic shareholding and providing a fresh injection of capital to the company as it prepares to go public. With its impressive growth story and innovative business model, Zepto is well-positioned to make a successful debut on the public markets.
Source: https://inc42.com/buzz/ahead-of-ipo-zepto-pushing-investors-to-offload-stake-worth-250-mn/
