Zepto receives approval for its $1B IPO

Quick commerce company Zepto has received key approvals from the Securities and Exchange Board of India (SEBI), clearing a critical regulatory milestone on its path to a public listing. 

SEBI issued its observations on Zepto's draft red herring prospectus (DRHP) between May 4 and 8, as part of a batch of approvals covering six companies. In regulatory parlance, receiving SEBI's observations is equivalent to securing the green light to float a public offering.

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto has gone from a pandemic-era experiment in rapid grocery delivery to an IPO-bound company in just five years. Few Indian consumer startups have moved this quickly from inception to the public markets, making Zepto's trajectory one of the fastest in the country's recent startup history.

The Bengaluru-based company had confidentially filed its DRHP in December, opting for the confidential pre-filing route, a mechanism that allows companies to seek SEBI's initial feedback on draft documents without public disclosure. This approach is increasingly favoured by high-profile companies looking to manage the optics and timing of their listing process more carefully.

Zepto's IPO is currently expected to be sized at approximately Rs 8,000–9,000 crore, revised down from an earlier target of Rs 11,000–12,000 crore. The final issue size and pricing remain fluid and could be revised further, said people close to the development. The offering is largely expected to comprise a primary issuance, meaning the bulk of the capital raised would flow directly into the company rather than to existing shareholders cashing out.

If the listing proceeds, Zepto will join rivals Zomato and Swiggy on the exchanges, both of which have already navigated the public markets. Zomato, which listed in 2021, has since expanded aggressively into quick commerce through its Blinkit platform and is now valued in excess of Rs 2 lakh crore. Swiggy, which listed more recently, has faced a more turbulent post-IPO period as investor scrutiny over profitability timelines has intensified.

Zepto's listing will therefore arrive under a sharper market lens than its predecessors faced. Investors will be closely watching the company's unit economics, path to profitability, and its ability to hold ground against well-capitalised competition. The quick commerce space, while growing at a blistering pace, is also burning significant capital as players race to expand their dark store networks and offer ever-faster delivery windows.

Also joining the queue through SEBI’s confidential pre-filing route is Dhoot Transmission, an auto components manufacturer backed by Bain Capital. The company is looking to raise about $250 million, or roughly Rs 2,258 crore, through a combination of fresh shares and an offer for sale by existing investors. Promoters, however, are not expected to dilute their holdings. The IPO would provide Bain Capital a partial exit while giving public market investors exposure to India’s expanding automotive components sector.

Blackstone-backed Horizon Industrial Parks is planning to raise Rs 2,600 crore through a pure fresh issue, with no offer for sale component. Nearly Rs 2,250 crore of the proceeds will go towards debt repayment, underscoring the extent to which the listing is aimed at strengthening the company’s balance sheet. The proposed IPO also reflects growing investor interest in industrial and logistics infrastructure, fuelled by India’s manufacturing push and rising demand for organised warehousing.

Medical devices maker Surgiwear, based in Uttar Pradesh, is seeking to raise up to Rs 370 crore through a fresh issue, alongside an equal-sized offer for sale by promoter Ghanshyam Das Agarwal. The company plans to use the proceeds for new machinery purchases, debt repayment, and general corporate purposes. Its listing would add to the still-limited universe of publicly traded Indian medical devices companies, a sector increasingly drawing policy attention as India attempts to reduce dependence on imports.

Agrochemical company Crystal Crop Protection is preparing an IPO that includes a fresh issue of Rs 600 crore and an offer for sale of more than 74 lakh shares by promoters and investors. Among those partially exiting are International Finance Corporation and IFC Emerging Asia Fund. The company intends to use the fresh capital to repay debt at both the parent company and subsidiary Saffire Crop Science, while also funding acquisitions and strategic initiatives. Interest in agrochemicals has remained strong amid India’s focus on agricultural productivity and food security.

Hotel Polo Towers, which operates upscale and mid-market hotels across northeast, east, and north India under the Polo and Max brands, is also tapping the public markets. Its IPO consists of a Rs 300 crore fresh issue and an offer for sale of 71.2 lakh shares by promoters. The listing would bring attention to hospitality infrastructure in India’s northeast, a region that has historically seen limited representation in public markets but is increasingly attracting tourism and infrastructure investment.