Quick commerce startup Zepto is expediting plans for an initial public offering (IPO), with a draft reportedly expected to be filed by March or April this year. This comes after getting approval from Singapore for the transfer of address to India, a key step in the process. According to a report in the Economic Times, a crucial hearing on the reverse merger application to complete the change of address is scheduled at the National Company Law Tribunal (NCLT) on January 17. Singapore’s approval marks an important milestone in Zepto’s move to set up operations in India.
vote
Do you prefer QCommerce over traditional e-commerce for faster delivery?
A board meeting will reportedly be held on January 19 to discuss the size of the IPO, appointment of bankers and other resolutions related to the holding company transfer. Zept is also finalizing the appointment of independent directors in preparation for an initial public offering. With this IPO, Zepto becomes the third major quick commerce company to go public in India after Zomato and Swiggy.
Zepto is not “Amazon or Walmart”
In a recent interview with the Economic Times, he said: Zepto CEO Aadit Palicha said Zepto is an Indian company, not “Amazon or Walmart.” Zept’s focus on domestic ownership is said to be driven by a desire to build trust with the country’s policymakers, citizens and shareholders. The move is also reportedly in line with the Indian government’s increased scrutiny of foreign quick-commerce companies and their operations in India.
“2nd Largest Qcommerce Company” in India
Founded by Paricha and Kaivalya Vohra, both of whom dropped out of Stanford University, Zepto has emerged as one of India’s fastest growing consumer internet companies. Zepto is the second-largest player in the space with a 29% share in the quarter ended June 30, after Blinkit, which had a 46% share, according to a recent report by Motilal Oswal. The report excludes Tata Group Bigbasket and Flipkart Minutes, while Swiggy Instamart’s market share is said to be 24%.
Fully prepared for a major IPO
As ET previously reported, Zept is in talks with bankers about a possible IPO in mid-2025, initially aiming to raise at least $450 million. This goal may be adjusted closer to draft submission. Sources said Zepto is deeply involved in the IPO process and upcoming board meetings will focus on these plans. Approval of a reverse merger and subsequent transformation into a public limited company is a necessary step before filing for an IPO. ET also reported that Wall Street banks such as Morgan Stanley and Goldman Sachs are among the banks vying for a role in Zept’s IPO.
Following a $350 million funding round in November, Zept has around $1.4 billion in cash on hand, putting it in a position to compete with rivals and new entrants like Flipkart Minutes. CEO Aadit Palicha confirmed that the company is fully compliant with India’s foreign direct investment (FDI) regulations and highlighted the move to local ownership. In about six months, the company has raised more than $1 billion.
