Zepto IPO: Unicorn sets up new entity to streamline operations, IPO expected in three-four months, says report

Flash trading company Zepto has formed a new entity, Zepto Marketplace Private Limited, to streamline its operations ahead of its upcoming initial public offering (IPO).

The company currently 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 procures products from various brands and exclusively sells them. is through the Zepto platform of some group of companies.

Kiranakart Technologies operates Zepto to directly source products from brands and distribute them to a select group of companies including Geddit Convenience, Drogheria Sellers and Commodum Groceries. These companies are Zepto licensees who then sell through a license agreement. application product.

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 also appears to be making a similar move by listing Zepto Marketplace Private Limited on October 22, 2024. The move could signal a move away from its current B2B model, bringing it closer to its publicly listed counterparts. Blinkit (owned by Zomato. ) and Swiggy Instamart.

In addition, Zepto is reportedly in the final stages of preparing draft documents for an initial public offering, with plans to file them by March or April. After Singapore’s approval, the e-commerce company will move its holdings to India, the Economic Times reported.

The Bengaluru-headquartered company is planning a board meeting on January 19 to discuss the size of the IPO, select bankers and make final decisions regarding the holding company’s move to India.

Zepto originally aimed to raise a minimum of $450 million in funding, although this figure may be adjusted before the IPO is filed. Notably, prominent Wall Street firms such as Morgan Stanley and Goldman Sachs are currently are 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 in an expanding market.