Zepto IPO

About Zepto IPO

Quick commerce unicorn Zepto has filed papers with SEBI for its IPO through the confidential route. It has received approval from its board for its IPO pegged at ₹11,000 crores. The IPO is expected to be a mix of a fresh issue and an offer for sale.

Zepto IPO opens on [TBA] and closes on [TBA]. The allotment of shares will take place on [TBA]. The credit of shares to the Demat account will take place on [TBA]. The initiation of refunds will take place on [TBA]. The listing of shares will take place on [TBA].

The lot size of shares in the IPO is [TBA]. The minimum number of lots in the IPO for retail investors is [TBA]. The minimum investment amount required by a retail investor is ₹[TBA] based on the upper price.

A next-door quick commerce app, Zepto delivers a host of items like groceries, fruits, vegetables, electronics and much more to customers within minutes. Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra.

Objectives of Zepto IPO

TBA

Industry Outlook

Riding on an increase in online orders, particularly from smaller towns and cities, the total addressable market (TAM) of quick commerce is likely to reach USD 57 billion by 2030. Sustained growth in quick commerce GOV, improvement in food delivery margins and a stable competitive environment will act as catalysts for the sector’s growth in the coming days.

E-commerce and quick commerce have witnessed a growth of 2 to 3 times faster in value than traditional trade channels. This has lowered the need for a traditional trade network for market entry into the sector.

Zepto Company Information

Zepto is a quick-commerce company delivering groceries and daily essentials to customers in just a few minutes. It was started by two young entrepreneurs, Aadit Palicha and Kaivalya Vohra. Zepto uses a network of small warehouses called ‘dark stores’ located in different areas of a city. It uses these dark stores to deliver items quickly. Through its mobile app, customers can order fruits, vegetables, snacks, milk, and other essentials anytime.

Strengths of Zepto

TBA

Risks of Zepto

TBA

Anchor Investor Bidding Date

TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: TBA
• Book Running Lead Managers: TBA

Zepto Business Model

Zepto's business model is cantered around ultra-fast grocery delivery through a network of strategically located dark stores. It generates revenue through product margins, delivery fees, subscription-based loyalty programmes and advertising. Advanced technology supports these operations. The company maintains cost-effectiveness and fast delivery services by optimising its supply chain and delivery efficiency.

Zepto Growth Trajectory

Zepto's total revenue rose to ₹4498.57 crores in FY 24 as against ₹2077.60 crores in FY 23. With the revenue growth outpacing expenditure, the company's losses decreased to ₹1248.60 crores in FY 24 from ₹1272 crores in FY 23. Its EBITDA margin also improved from (55.95%) in FY 23 to (23.81%) in FY 24.

Zepto Market Position

Processing upwards of 700,000 orders daily, Zepto delivers more than 25,000 products across various categories within 10 minutes, thanks to its network of dark stores. Zepto holds a strong second position in India's quick commerce market (around 29-30% share), challenging leaders like Blinkit, with significant presence in Tier 1 & 2 cities, processing millions of daily orders, and focusing on profitability via efficient dark stores and tech, targeting young urban professionals with quick, convenient grocery delivery and a potential 2026 IPO to fuel growth. It operates more than 550 dark stores.

How to Apply for the Zepto IPO?

To apply for this IPO:

• Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
  
• Specify IPO details: Enter the number of lots and the price you wish to apply for.
  
• Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange.
  
• Mandate Notification: Your UPI app will receive a mandate notification to block funds.
  
• Approve Request: Your funds will be blocked once you approve the mandate request on your UPI.