"Initiating the process without unnecessary risk," Aadit Palicha says Zepto’s confidential filings helped start early SEBI review

After quick commerce major Zepto filed draft papers for a reportedly over $1.3 billion IPO via the confidential route, cofounder and CEO Aadit Palicha said the move has already proved beneficial for the company.

Confidential filings allow companies to start an early SEBI review

According to the entrepreneur, confidential filings allow companies operating in high-growth, high-frequency markets to initiate the Securities and Exchange Board of India (SEBI) review process early, even as their financials continue to evolve.

Palicha shared that the approach helps firms complete regulatory reviews while keeping their most up-to-date financial picture intact for investor discussions.

For businesses like Zepto, which operate in intensely competitive categories, confidential filings reduce the risk of prematurely placing sensitive operational and financial information in the public domain without delaying IPO readiness.

Speaking at Samvad, the Zepto boss explained, “For younger companies, the difference between one quarter and the next can be significant—sometimes as much as 50% growth."

“It’s about initiating the process without unnecessary risk,” Palicha added.

Palicha-led Zepto plans to raise around ₹11,000 crore through a fresh issue of shares, with an offer for sale expected from early investors.

Zepto received shareholder approval for the IPO at an extraordinary general meeting held on December 23.

Morgan Stanley, Axis Capital, HSBC, Goldman Sachs, JM Financial, IIFL Securities and Motilal Oswal are acting as bankers to the issue.

The proposed fundraiser comes amid an intense battle in the quick commerce sector. Zepto competes with Swiggy Instamart and Eternal’s Blinkit, both of which are well-capitalised.

Swiggy recently raised ₹10,000 crore via a qualified institutional placement (QIP), while Eternal raised ₹8,500 crore through a QIP in November 2024.

The sector has also seen increased scrutiny over labour practices, with gig workers protesting payouts, incentives and delivery timelines across platforms.

In October, Zepto raised $450 million in a mix of primary and secondary funding led by US pension fund CalPERS. IPO proceeds are expected to strengthen its war chest as it takes on rivals, including Amazon, Flipkart Minutes, and BigBasket.

If the listing materialises by September next year, India’s top three quick commerce players would be publicly listed, less than six years after Zepto’s incorporation in 2020.

Founded by Palicha and Kaivalya Vohra, the quick commerce unicorn has raised over $2.45 billion to date and reported FY24 operating revenue of ₹4,454 crore, with a net loss of ₹1,249 crore.

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