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Zepto IpoImage Credit source: ai generated

Zepto IPO: Zepto, a famous company that delivers within 10 minutes, is preparing to make its presence felt in the stock market soon. Market regulatory body SEBI has given its official approval to Zepto's Initial Public Offering i.e. IPO. After this decision, the way has now been completely cleared for the company to get listed on Dalal Street.

There will be a mega issue of Rs 7500 to 9300 crores.

According to a news from Money Control, Zepto is planning to raise huge amount from the market through this IPO. The company aims to raise funds ranging from $800 million to $1 billion. If it is seen in Indian rupees, then this figure falls between approximately Rs 7,500 crore to Rs 9,300 crore. Such a huge amount means that Zepto is all set to take its business to a new height. Currently, the company is busy finalizing its updated draft red herring prospectus (UDRHP). If everything goes as per schedule, the company's shares will be seen trading in the market within the next 60 to 90 days.

Journey to stock market in just 4 years

This success of Zepto is also very special because this company was started in the year 2020. Reaching the stock exchange in a short journey of just a few years is considered a big achievement for any startup. Interestingly, after the listing, Zepto will become the only 'pure play' quick commerce company in the country, whose shares will be directly available in the market. 'Pure play' means that the company's entire focus is only on fast delivery business model. However, at present the Zepto management has not made any official comment on the questions asked regarding the IPO timeline and listing.

Preparation for direct competition with big companies

It is natural for the retail investors investing money in the market to have a question as to why Zepto needs such a huge amount of money. When Zepto started preparations for its IPO in September last year, the initial plan was to raise $500 million. But later this target was increased. Actually, the market of quick commerce has now become very aggressive. The company has to compete directly with strong rivals like Blinkit, Swiggy Instamart, Amazon Now, Flipkart Minutes and Tata-owned Big Basket. Zepto is in dire need of this capital to stand strong against these big players and maintain its hold on the market.

Zepto's orders are increasing at rocket speed

There has been a tremendous increase in the number of customers and daily order book of the company. There was a time when this quick commerce platform used to deliver around 15 to 17 lakh orders every day. But now this figure has jumped to 25 lakh orders per day. Delivering goods to 25 lakh homes daily proves that the acceptance of this service among customers is continuously increasing.

Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.

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