Zepto Limited publicly filed an updated draft prospectus on Sunday for an initial public offering that could raise up to 80 billion rupees ($836 million) from a fresh issue of equity, according to the documents disclosed by the company. The move would represent a major capital markets event for India’s quick-commerce segment.
The filing indicates Zepto will issue new shares as part of the primary tranche, while a set of existing investors have proposed to sell shares through an offer-for-sale component. Those sellers include Nexus Ventures VI Holdings LLC, Nexus Ventures VII Holdings LLC, Contrary ZEP Holdings LLC, Razor Ventures Zepto LLC, Kaiser Foundation Hospitals and Kaiser Permanente Group Trust. Collectively, the offer-for-sale portion would cover 113.47 million shares.
Zepto was incorporated in December 2020 as Kiranakart Technologies Private Limited and later rebranded to Zepto. The filing lays out the company’s fulfillment model: it operates a network of dark stores positioned in high-demand neighbourhoods to fulfil orders placed by users on its platform.
The registrant named its promoters as Aadit Palicha, Kaivalya Vohra, Lazarus Trust, The Vohra Trust, Kavit Palicha acting as trustee of Lazarus Trust and Jaideep Vohra acting as trustee of The Vohra Trust. These promoter disclosures appear in the draft prospectus as required by regulatory norms.
For the IPO execution, Zepto appointed seven book running lead managers: Axis Capital Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, Motilal Oswal Investment Advisors Limited, HSBC Securities and Capital Markets (India) Private Limited, JM Financial Limited and IIFL Capital Services Limited. KFin Technologies Limited has been named as the registrar to the offer.
The filing also states the company may pursue a pre-IPO placement of up to 16.02 billion rupees prior to filing the red herring prospectus with the Registrar of Companies. The equity shares are proposed to be listed on BSE Limited and National Stock Exchange of India Limited.
Context and next steps
The updated draft prospectus lays out the structure of the transaction, the parties involved and operational details about Zepto’s fulfilment footprint. It flags a potential pre-IPO placement and confirms the stock exchange destinations for a primary listing.
Additional procedural steps, such as filing the red herring prospectus and completing any pre-IPO placement, would precede the finalisation of the offer and the allotment timetable. The document provides the foundational disclosures that investors and regulators require ahead of a public offering.