Grocery delivery startup Zepto Ltd. is preparing to file draft papers for an initial public offering (IPO) of about $500 million in India as early as next week, according to people familiar with the matter, as competition intensifies in the country’s fast-growing quick-commerce market.
The 10-minute delivery platform is working with Axis Bank, Motilal Oswal Investment Advisors, and Indian units of Morgan Stanley, HSBC Holdings, and Goldman Sachs to submit its draft red herring prospectus through the confidential filing route, the sources said. The people declined to be identified as the information is private.
The proposed offering is expected to comprise a mix of fresh issue of shares and secondary sales by existing investors, with proceeds likely to be used for business expansion and strengthening operations. The size and timing of the IPO are still under discussion and could change, the sources added.
Representatives for Zepto, Goldman Sachs and HSBC declined to comment, while the other banks did not respond to requests for comment.
India’s quick-commerce sector is witnessing rapid growth, with startups racing to build dense networks of dark stores and last-mile delivery fleets to cater to rising demand for groceries and household essentials. The segment has attracted heavy investor interest, with global funds such as SoftBank Group and Temasek Holdings investing billions of dollars, turning India into one of the world’s most closely watched markets for ultra-fast delivery.
Zepto competes with Amazon India as well as domestic players including Swiggy, Zomato and Tata Group’s BigBasket. The proposed IPO follows Zepto’s $450 million fundraise in October, which valued the company at around $7 billion, underscoring investor confidence in the company despite intensifying competition in the sector.