Zepto in talks with Goldman Sachs, Morgan Stanley to launch IPO by mid-2025: Report

Quick commerce unicorn Zepto, which managed to raise over $1 billion in the past two months, is now setting its sights on an IPO—an ambition shared by many new-age entrepreneurs.

According to multiple media reports, Zepto has initiated talks with Wall Street bankers Morgan Stanley and Goldman Sachs, as well as Axis Capital, to explore the potential IPO, which is anticipated to take place in the second half of next year, around August 2025.

Relocating to India and IPO size

A report from ET noted that the IPO plan is contingent on Zepto’s move to relocate its headquarters from Singapore back to India—a process the startup is already undertaking.

The report further indicated that Zepto aims to raise approximately $450 million through a fresh share issuance and will also include an offer for sale from existing investors, which the company has yet to decide.

Zepto funding and investors

Zepto has been on an aggressive fundraising spree over the past year. The startup first raised $200 million in late August 2023, becoming the country’s 111th unicorn. It followed up with another $31.25 million in funding in November 2023.

In June 2024, Zepto broke previous fundraising records by securing $665 million at a valuation of $3.6 billion. This valuation was further boosted to $5 billion after the company raised an additional $340 million last month.

It is backed by some of the most prominent investors, including Lightspeed, StepStone, Mars Growth Capital, General Catalyst, and Contrary.

Who are the founders?

Founded in 2021 by Stanford dropouts Kaivalya Vohra and Aadit Palicha, Zepto operates in the highly competitive quick commerce market, delivering groceries, household items, and electronic accessories to urban Indian consumers within 10-15 minutes. 

The startup uses a network of "dark stores"—small warehouses located close to high-demand areas. This allows the three-year-old startup to ensure swift delivery times.