Startup IPOs: Lenskart, Licious, Zepto gear up for public listing

The calendar year 2024 saw a slew of big-ticket new-age technology companies (NATCs) such as Swiggy, FirstCry, Ola tapping the primary market to raise capital via initial public offering (IPO) route. Overall, in the last five years more than 30 startups have made their presence felt in primary market and the momentum is likely to continue as over a dozen are gearing up to file their IPO papers with the Securities and Exchange Board of India (SEBI).

While the likes of Ather Energy, WeWork, Ecom Express, and Smartworks are already in process to list their shares on domestic bourses, quick commerce heavyweight Zepto, eyewear retailer Lenskart, online meat and seafood seller Licious, and many others intend to file their draft red herring prospectus (DRHP) in the next 1-3 years.

Last year, eight new-age companies listed their shares on the domestic stock exchanges. The renowned startups such as Swiggy, Ola Electric, Awfis, GoDigit Insurance, TBO Tek, FirstCry, Ixigo and Unicommerce raised ₹27,421 crore via IPO route, making a strong comeback after 3 quiet years. This was the largest IPO fundraising since 2021, when seven big NATCs, including Paytm, Zomato and Nykaa, garnered ₹42,826 crore through the primary market. After 2021, the next two years were a quieter period for startups, with five going public in 2023, and only three in 2022, as many of them deferred IPO listing due to valuation concerns, global tech slowdown, and weak performance of industry heavyweights Paytm, Zomato, and Nykaa.

Here’s all you need to know about big-ticket startup IPOs

Zepto aims for $800 million-$1 billion IPO

The quick commerce unicorn is planning to raise between $800 million and $1 billion via IPO route, which would be a combination of fresh and secondary share sale. The CEO Aadit Palicha-led company is reportedly in discussion with merchant bankers to file its IPO document with the SEBI later this year. It has hired Goldman Sachs, Morgan Stanley, Axis Capital as bankers, as per report.

In the competitive quick commerce market, Zepto competes with Zomato's Blinkit, Swiggy Instamart, Tata’s Big Basket, and other companies. Recently, food and grocery delivery firm Swiggy made its debut on the domestic bourses after raising $1.4 billion via IPO route, while Zomato is already listed on the stock exchanges.

As of November 2024, Zepto raised$1.9 billion in total funding, including $350 million in a recent funding roundled by Motilal Oswal's Private Wealth division at a valuation of $5 billion. Nexus Venture Partners is the biggest investor in the company with a share of 18.6%, while family offices of Mankind Pharma, Haldiram Snacks, Cello, and individuals like Indian cricketer Sachin Tendulkar and actor Abhishek Bachchan are among other notable investors.

Licious eyes a $2 billion valuation for an IPO

The online meat and seafood seller backed by Temasek Holdings is reportedly seeking to become profitable as it plans for an IPO in 2026. Founded in 2015, the Bengaluru-based firm is eyeing a valuation of over $2 billion in its listing, as per Bloomberg report.

In October 2024, the company raised $52 million in a Series G funding round led by Mumbai-headquartered IIFL AMC’s late-stage tech fund, making it the latest entrant to the coveted unicorn, or the $1-billion valuation club.

Earlier in July this year, the direct-to-consumer (D2C) startup raised $192 million in a funding round led by Singapore-headquartered Temasek, and Multiples Private Equity. The funding round valued the company at $650 million then.

Founded in 2015 by Vivek Gupta and Abhay Hanjura, Licious has managed to crack the usual customer pain points of quality, hygiene, freshness, and convenience in a highly unorganised and underserved fresh meat and seafood market in India, pegged at $40 billion.

Lenskart aims to raise up to $1 bn at $10 bn valuation

The omnichannel eyewear retailer has initiated the IPO process and plans to file DRHP with the SEBI in the first half of the current year. Lenskart seeks to raise about $1 billion at a valuation of $10 billion, nearly double from its previous funding round.

Lenskart, last valued at $5 billion, has been on a fund-raising spree, attracting over $1 billion in investment in less than two years. The Peyush Bansal-led company raised $200 million in June 2024 via secondary funding from Singapore’s state-owned investment firm Temasek and Fidelity.

In October 2023, the competition regulator approved the acquisition of a 1.74% stake in Lenskart by private equity (PE) fund Kedaara Capital Fund III LLP on a fully diluted basis.

Before that in June 2023, the company had received $100 million in funding from another PE player ChrysCapital via primary and secondary share purchases, which attracted close to $850 million in capital.

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