India’s quick commerce poster child Zepto is inching closer to its much-anticipated stock market debut. The startup has reportedly received an in-principle nod from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), marking a significant milestone in its journey from a fast-growing startup to a public company.

However, this is not the final green light just yet. The company is currently navigating a crucial interim stage—one that could determine how its IPO ultimately shapes up.

Credits: NDTV Profit

What the SEBI Nod Really Means

An in-principle approval from SEBI is an important step, but it does not mean the IPO is ready to launch immediately. Instead, it signals that the regulator is broadly aligned with the company’s proposal, subject to further processes and disclosures.

For Zepto, this approval comes after it made a confidential filing for its IPO—a route increasingly preferred by startups to keep sensitive financial and strategic details private in the early stages. The company is expected to raise around $1.2 billion through the public issue, making it one of the most closely watched IPOs in India’s startup ecosystem.

“Testing the Waters”: A Strategic Pause Before the Big Leap

At present, Zepto is in what is known as the “testing the waters” phase. This regulatory provision allows companies to engage with institutional investors before formally launching their IPO.

During this phase, Zepto is actively holding discussions with investors to gauge interest levels, understand valuation expectations, and assess overall market sentiment. This step is particularly critical in today’s volatile market environment, where investor appetite can shift quickly.

The feedback gathered here will influence key decisions—such as pricing, issue size, and timing—ensuring that the IPO is positioned for success when it finally hits the market.

A Young Startup Eyeing Public Markets

What makes Zepto’s IPO journey even more remarkable is its speed. Founded just a few years ago, the company has rapidly scaled its operations and established itself as a leading player in the quick commerce space.

In December, Zepto secured shareholder approval for the IPO during an extraordinary general meeting, signaling strong internal confidence in its growth story. If successful, it could become one of the youngest startups in India to go public—highlighting the increasing maturity of the country’s startup ecosystem.

Power-Packed Lineup of Investment Bankers

To steer its IPO ambitions, Zepto has roped in a formidable lineup of investment bankers. These include Morgan Stanley, Goldman Sachs, HSBC, Axis Capital, JM Financial, IIFL Securitiesand Motilal Oswal.

This diverse mix of global and domestic financial institutions underscores the scale and importance of the offering. Their role will be crucial in structuring the IPO, managing investor outreach, and ensuring a smooth listing process.

Strategic Shift: Returning Home to India

In a significant strategic move ahead of the IPO, Zepto shifted its domicile back to India from Singapore in January. This transition aligns the company with Indian regulatory frameworks and simplifies its path to listing on domestic stock exchanges.

The move also reflects a broader trend among Indian startups that had earlier moved overseas but are now returning to tap into India’s deepening capital markets and growing investor base.

Credits: Inc42

What Lies Ahead

The road to IPO is still unfolding for Zepto. Once the “testing the waters” phase concludes and investor feedback is consolidated, the company is expected to approach SEBI again for final approval. This will be followed by formal filings and eventually, the IPO launch.

For now, all eyes are on how investors respond. Strong demand could not only validate Zepto’s business model but also set the tone for upcoming startup IPOs in India.

As quick commerce continues to reshape urban consumption patterns, Zepto’s public market debut could mark a defining moment—not just for the company, but for the entire sector.