Loss-making startups slash OFS share as IPO scrutiny tightens; Zepto, PWA, Curefoods load up on fresh issue
Zepto (Rs 8,010 cr), Curefoods (Rs 800 cr) and others are anchoring IPOs on fresh issues, with OFS shrinking to 10-11% at Ola Electric and PhysicsWallah versus a ~80% median in the 2021-22 cohort. Signal: capital is for growth, not early exits, as public-market patience for cash-burning consumer plays thins.
What happened
Young loss-making Indian consumer startups like Zepto, PhysicsWallah and Curefoods are keeping OFS portions lean and fresh issues large, signalling IPO proceeds
Key facts
- Rs 8,010 crore Zepto fresh issue
- Rs 800 crore Curefoods fresh issue
- 10-11% OFS for Ola Electric and PhysicsWallah
- ~80% median OFS in 2021-22 cohort
Why this matters
With consumer IPO proceeds now overwhelmingly earmarked for fresh-issue growth capital, expect more aggressive M&A war chests at Zepto, Curefoods and peers, reshaping competitive consolidation timelines.