Fast-paced commerce company Zepto has set up a new entity, Zepto Marketplace Private Limited, to streamline its operations ahead of its upcoming initial public offering (IPO). According to media reports, Zepto Marketplace Private Limited was officially registered on October 22, 2024.
Currently, the company operates on a business-to-business (B2B) model. Through its Indian subsidiary Kiranakart Technologies Pvt Ltd, co-founded by Aadit Palicha and Kaivalya Vohra, Zepto sources products from various brands and sells them exclusively to a select group of companies through the Zepto platform.
Kiranakart Technologies operates Zepto to source products directly from brands and distribute them to a select group of companies including Geddit Convenience, Drogheria Sellers and Commodum Groceries. These companies are licensees of Zepto, and they sell the application's products through a license agreement.
In comparison, competitors such as Blinkit (owned by Zomato) and Swiggy Instamart have adopted a marketplace approach that allows multiple sellers to list their products directly for consumers.
Zepto seems to be taking a similar step by registering Zepto Marketplace Private Limited on October 22, 2024. The move marks a shift away from its current B2B model, bringing it closer to aligning with publicly listed Blinkit (owned by Zomato). ) and Swiggy Instamart.
Additionally, Zepto is reportedly in the final stages of preparing draft documents for an initial public offering, which it plans to file by March or April. After Singapore's approval, Quick Commerce will move its holdings to India, reports the Economic Times.
The Bengaluru-headquartered company plans a board meeting on January 19 to discuss the size of the IPO, select bankers for the issue and finalize proposals related to shifting the ownership entity to India.
Zepto initially targeted at least $450 million in funding, but this figure could see adjustments until the IPO draft papers are submitted. Notably, leading Wall Street firms such as Morgan Stanley and Goldman Sachs are currently in talks with Zepto regarding its upcoming IPO.
Following a successful funding round on November 22, Zepto raised $350 million, bringing its total cash reserves to approximately $1.4 billion. This significant capital infusion positions the company favorably amid stiff competition from both established players and emerging competitors such as Flipkart Minutes in the rapidly expanding market.