Zepto Secures SEBI Approval for $1 Billion IPO

Zepto has secured in-principle approval from the Securities and Exchange Board of India (SEBI) for its $1 billion initial public offering, regulatory filings show. The Mumbai-based startup plans to list its shares on Indian stock exchanges by July, according to sources familiar with the matter.

The IPO will primarily consist of a fresh issue of shares, with Zepto filing updated draft papers within six to eight weeks. The company, last valued at $7 billion, had submitted its draft prospectus through the confidential filing route in December.

Zepto operates in India's $10–11 billion quick commerce market, where it competes with Blinkit and Swiggy's Instamart. Blinkit holds over 40% market share, while Zepto and Instamart each command more than 20%, analysts estimate. The sector has seen rising competition, with Flipkart and Amazon expanding their instant delivery footprint.

Investors in Zepto include General Catalyst, Lightspeed Venture Partners, Haldiram Snacks family office, and Motilal Oswal AMC. The company joins a wave of tech listings amid volatile market conditions, which recently prompted fintech firm PhonePe to pause its $1.3 billion IPO.

Zepto is expected to finalize its draft red herring prospectus and schedule bookbuilding in the coming weeks, with listing anticipated by July.