Zepto Prepares for IPO Filing Having Secured Singapore Approval to Move Holding Entity to India

Bengaluru-based quick-commerce company Zepto is preparing to file its draft red herring prospectus (DRHP) for an initial public offering (IPO) by March or April this year. [Source: Economic Times]

Moreover, the National Company Law Tribunal (NCLT) will hear the company’s reverse merger application on January 17, another key milestone in moving the quick commerce brand’s domicile from Singapore to India.

Zepto’s board has scheduled a meeting on January 19 to weigh up the IPO size, appoint bankers for the issue, and pass resolutions related to the relocation of its holding entity.

“They are deeply involved in the IPO process, and the upcoming board meeting will focus on critical decisions, including the timeline to convert the Indian entity into a public limited company,” the Economic Times reported citing a source.

What's next?

If successful, Aadit Palicha-led Zepto could become the first independent quick-commerce platform to go public, ahead of rivals such as Zomato’s Blinkit and Swiggy’s Instamart. Notably, Zomato’s stock rose in 2024 because of Blinkit.

Incidentally, Zepto closed a $350 million funding round in November 2024, increasing its cash reserves to $1.4 billion. The quickcom brand also registered a new entity, Zepto Marketplace Pvt Ltd, in October 2024, indicating a potential shift from its business-to-business-to-consumer (B2B2C) model to a marketplace approach.

Zepto Marketplace was registered in October 2024 and its operations will soon switch to the new model once the operational and regulatory processes are sorted out. [Source: PTI]

According to the report, the shift will allow Zepto to have better management in quality control and service. The quick com leader is also set to soon launch “Thor", a SaaS inventory management platform to further streamline operations.

The restructuring will comply with India’s foreign direct investment (FDI) norms.

Moreover, as a part of its IPO preparations, Zepto will finalize independent directors for its board. 

Incidentally, Zepto plans to expand from about two dozen cities to over 50 cities by next quarter.

Also read: “Our Gameplan Seems to Tax People to Death,” Finance Startup Founder Bashes Indian Economy (startuppedia.in)