Aadit Palicha says Confidential IPO Route shields Zepto’s numbers from rivals in a competitive market

Zepto Confidentially Files for $1.3 Billion IPO Amid Fierce Quick Commerce Competition

Zepto, a leading quick commerce company, has confidentially filed draft papers for a $1.3 billion Initial Public Offering (IPO) led by cofounder Aadit Palicha. The move aims to shield the company's financials from rivals like Swiggy Instamart and Blinkit amidst intense competition and recent protests.

Competitive Considerations Drive Confidential Filing

Days after filing draft papers for the reportedly over $1.3 billion IPO via a confidential route, Palicha explained the reasoning behind the decision. The company doesn't want to reveal quarterly financials to rivals at a time when the market is intensely contested.

• Zepto's cofounder, Aadit Palicha, said the company chose the confidential filing route to start the SEBI process ahead of time, while refining the document as numbers are still playing out.
• Palicha emphasized that the IPO filing process had been "very positive" and "very smooth" for the company.

Fundraising Amid Intense Competition

The Palicha-led company plans to raise around ₹11,000 Cr through a fresh issue of shares, with an offer for sale expected from early investors. Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23.

• Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are the bankers for the issue.
• The fundraise comes amid an intense battle in the quick commerce space, where Zepto competes with Swiggy Instamart and Eternal's Blinkit—both flush with funds.

Company's Financials and Future Plans

Zepto has raised over $2.45 billion from investors including Lightspeed Venture Partners, Y Combinator and Nexus Venture Partners. The company is yet to file FY25 numbers, but in FY24, it reported an operating revenue of ₹4,454 crore on a net loss of ₹1,249 crore.

• Zepto plans to raise around ₹11,000 Cr through a fresh issue of shares.
• The company has resumed expansion and removed handling and delivery fees for most orders after cost-cutting following aggressive expansion.

Key Milestones in Zepto's Journey

Founded by Palicha and Kaivalya Vohra, Zepto started in mid-2020 under the brand KiranaKart, offering 45-minute deliveries using local kirana stores, before pivoting to a dark-store model. The company has since scaled to most major cities.

• Zepto launched in Mumbai in April 2021 to offer 10-minute deliveries.
• The company is expected to list on the stock exchange by September next year.