Zepto Eyes ₹1,500 Cr Structured Debt Ahead of IPO: Report
In a move that signals its readiness for a potential initial public offering (IPO) in mid-2025, Indian e-commerce startup Zepto is reportedly in talks to raise ₹1,500 crore (approximately $200 million) through structured debt. The funds will be used to buy back shares from foreign investors and increase Indian ownership ahead of the company’s highly anticipated IPO.
According to a recent report by StartUpTalky, Edelweiss and other funds are expected to back the deal, which would significantly boost Zepto’s valuation. Despite the ongoing economic uncertainty, the company’s valuation remains steady at around $5 billion.
The news comes as Zepto is also nearing a $250 million secondary sale, which would be a major milestone for the startup. The secondary sale, which is expected to take place soon, would give early investors an opportunity to exit their stakes in the company at a significant profit.
Zepto’s impressive growth trajectory has been well-documented in recent years. The company has achieved a remarkable $4 billion annualized Gross Order Value (GOV) in a short span of time, making it one of the fastest-growing e-commerce startups in India. The company’s aggressive expansion strategy, which focuses on delivering high-quality products at competitive prices, has enabled it to attract a large customer base.
The structured debt deal, which is expected to be finalized soon, would provide Zepto with the necessary funds to accelerate its growth plans. The company plans to use the funds to strengthen its supply chain, enhance its logistics capabilities, and expand its product offerings.
Zepto’s decision to raise funds through structured debt is a strategic move to optimize its capital structure. By issuing debt at a competitive rate, the company can reduce its reliance on equity and avoid diluting its valuation. The structured debt deal would also provide Zepto with a cheaper source of capital compared to equity, allowing it to maintain its financial discipline and focus on growth.
The company’s plans for an IPO in mid-2025 are well underway, with Zepto expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) soon. The IPO, which is expected to be one of the largest in the country this year, would provide Zepto with the necessary funds to further accelerate its growth plans.
In conclusion, Zepto’s decision to raise ₹1,500 crore through structured debt ahead of its IPO is a significant development in the company’s growth story. The deal, which is expected to be finalized soon, would provide Zepto with the necessary funds to accelerate its growth plans and strengthen its financial position. With its impressive growth trajectory and aggressive expansion strategy, Zepto is well-positioned to become one of the leading e-commerce players in India.
News Source:
https://startuptalky.com/news/zepto-looking-structure-a-debt-deal-with-edelweiss/
