Meanwhile, the National Company Law Tribunal is scheduled to hear a reverse merger application to shift the domicile from Singapore to India on January 17. Singapore approval was an important part of the process.
The Bangalore-based company will convene its board of directors on January 19 to discuss the size of the IPO, the appointment of bankers involved in the matter, as well as shareholdings, people briefed on the matter said. A resolution to relocate the company to India is also likely to be considered.
“They (Zept) are deeply involved in the IPO process and will discuss this matter at the next board meeting,” one of the people said. “Reverse mergers need to be approved and Indian entities also require certain timelines, i.e., a pre-IPO filing process, before becoming a public limited company.”
Zepto is also in the midst of finalizing independent directors as part of the company’s pursuit of an IPO.
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Zepto could become the first independent quick-commerce company to go public. The parent company of arch-rivals Zomato and Swiggy, which owns the Blinkit and Instamart platforms, is already on the list. Much of Zomato’s stock price surge in 2024 can be attributed to Blinkit’s performance, with ET first reporting on September 7 that Zepto was in talks with bankers for an IPO in mid-2025. The initial plan was to raise at least $450 million, but that could change as draft IPO documents get closer to being filed.
Wall Street bankers including Morgan Stanley and Goldman Sachs are in talks with Zept for an IPO, ET reported. “They will be there with a few more bankers,” said another person with knowledge of the events at Zept.
Zepto closed on $350 million in funding on November 22, taking its cash pile to around $1.4 billion as it competes with rivals and new entrants like Flipkart Minutes in the fast-growing market. It became a dollar.
The plan to move the holding company to India comes as authorities are scrutinizing the QuickCommerce company’s operations for compliance with local foreign direct investment regulations.
“We have been 100% compliant with the country’s FDI regulations since our inception. However, we are also moving rapidly towards acquiring local ownership of our company,” Zepto Chief Executive Officer CEO Aadit Palicha told ET after closing its last funding round in November. In about six months, the company has raised more than $1 billion, the most for a local startup last year.
The General Catalyst-backed company has set up a new entity, Zepto Marketplace Pvt Ltd, which appears to be restructuring its operating model.
This new entity, registered on October 22, 2024, signals a possible shift from a business-to-business to consumer structure to a market approach.
