Zepto selects Goldman Sachs, Morgan Stanley, and Axis Capital for its IPO

Quick commerce startup Zepto has appointed investment banks, including Goldman Sachs, Morgan Stanley, and Axis Capital, to guide its upcoming initial public offering (IPO), slated for the second half of 2025. According to insiders, Zepto is preparing for a public market debut around August 2025. This decision comes on the heels of Zepto raising a massive $1 billion in just 60 days over two funding rounds, as reported.

Zepto’s IPO preparations follow closely behind competitor Swiggy, which is expected to file its draft red herring prospectus (DRHP) soon. An increasing number of tech companies in India, like Ola Electric, FirstCry, and Ixigo, are choosing to go public as investors increasingly reward those showing strong profitability prospects.

“Zepto’s strong short-term profitability has reassured investors that the company is ready for an IPO,” said one source familiar with the developments. The company plans to raise $450-500 million through the IPO via a fresh share issue, while the specifics of the offer for sale (OFS) are still being worked out.

The company and its investment bankers are currently determining Zepto’s IPO valuation, which was last pegged at $5 billion following its $340 million funding round on August 30. Though Zepto is headquartered in Singapore, it is in the process of relocating its base back to India—a necessary step for listing on Indian stock exchanges. CEO Aadit Palicha confirmed that this transition will be completed in the coming months.

Zepto, which competes with Blinkit (owned by Zomato), Swiggy Instamart, Tata’s BigBasket, and Flipkart Minutes, has attracted significant investor attention due to its execution capabilities and rapid growth over the last three years. The company’s gross merchandise value (GMV) has crossed $1.2 billion, and Zepto is on track to achieve profitability on an EBITDA basis soon, according to Palicha.

India’s quick commerce market, valued at $5.5 billion, continues to heat up as top players expand aggressively. Companies are adding dark stores and entering smaller towns to capture market share. Blinkit plans to operate 1,000 dark stores by the end of FY25, while Zepto aims to reach 700 stores by the close of the current fiscal year. Meanwhile, Swiggy Instamart is expanding into Tier II cities like Amritsar and Kanpur.

Analysts at Kotak Institutional Equities predict that the competition in the quick commerce space will intensify over the next year, with new entrants such as BigBasket, Flipkart, and possibly Amazon, joining incumbents Zepto, Blinkit, and Swiggy Instamart in the race for dominance.