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Zepto, the quick commerce startup, is making strides towards its IPO, with plans to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) later this year.
Zepto is aiming to raise approximately $800 million (about ₹6662 crores as of 6th June) through its upcoming Initial Public Offering (IPO). This figure marks an increase from the earlier target range of $400-500 million (₹3331 Crores - ₹4164 Crores as of 6th June).
DRHP Filing Planned: Zepto intends to submit its DRHP to SEBI in 2025.
IPO Target: The company plans to raise $800 Million (about ₹6662 crore as of 6th June), a notable rise in its target funding.
Reports have suggested that Zepto may hold off its public debut to calendar year 2026, particularly in light of recent regulatory happenings. While the DRHP filing remains in progress, the timeline for the IPO itself could still shift.
The regulatory body, Maharashtra Food and Drug Administration (FDA), suspended the food business license of Kiranakart Technologies Pvt Ltd. (Zepto's parent company) following an inspection of a storage facility in Dharavi, Mumbai.
The inspection uncovered food safety violations at Zepto’s facility, which led to the suspension of its food business license:
Fungal Growth on Food Items: Presence of mold on food products.
Unsanitary Storage Conditions: Food was stored near stagnant water and on filthy, wet floors.
Improper Temperature Maintenance: Cold storage not adhering to necessary temperature norms.
The table given below summarises the key events and details surrounding Zepto’s IPO plans.
Event |
Details |
|---|---|
DRHP Filing |
Planned for later in 2025 |
IPO Target |
Zepto aims to raise $800 Million in its IPO |
Regulatory Action |
Maharashtra FDA suspended the food business license due to violations |
Impact on IPO |
Regulatory issues may cause delays or impact public debut |
While Zepto continues to push forward with its IPO plans, the regulatory challenges it faces will be crucial in determining the timeline of its public debut.
It is crucial for investors to stay informed about the company's regulatory compliance and the status of its IPO filing.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
CNBC-TV18 — Zepto to file DRHP this year, planning $800 million IPO, https://www.cnbctv18.com/
Moneycontrol — Zepto plans IPO, but regulatory issues may cause delays, https://www.moneycontrol.com
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