Zepto Receives SEBI Approval For $1.2 Billion IPO

Quick commerce startup Zepto has received an in-principle nod from the Securities and Exchange Board of India (SEBI) for its proposed initial public offering (IPO), according to sources who spoke to NDTV Profit.

However, the company is still in the “testing the waters” phase — a regulatory provision that allows firms to gauge interest from institutional investors before formally filing IPO papers. Sources close to the company indicate that Zepto is continuing discussions with investors to assess demand, valuations and market appetite.

The startup had earlier made a confidential filing for an IPO expected to raise around $1.2 billion. Following the completion of the investor feedback process, Zepto is expected to return to SEBI for final approval and proceed with formal filings.

Zepto had received shareholder approval for the IPO at an extraordinary general meeting held on December 23, making it one of the youngest startups to tap the public markets.

The company has appointed Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal as bankers for the issue. Zepto had shifted its domicile back to India from Singapore in January.

This is a developing story.