Zepto IPO: A critical board meeting on January 19 will finalise several aspects of the IPO, including the appointment of bankers, the selection of independent directors, and determining the IPO size.
Zepto IPO: Quick commerce platform Zepto is gearing up to file its initial public offering (IPO) draft papers by March or April 2025, according to a report by The Economic Times. The company, known for its rapid delivery services, has already obtained the necessary permissions to relocate its base from Singapore to India ahead of the public listing.
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Zepto IPO: Opening Date, Price, Lot Size, GMP, Bankers
Board Meeting Scheduled: A critical board meeting on January 19 will finalise several aspects of the IPO, including the appointment of bankers, the selection of independent directors, and determining the IPO size. The IPO opening date will be announced later.
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GMP: Data on the grey market premium will be available once the IPO process gets rolling. The price of the IPO will also be announced just days before the IPO opening date.
Regulatory Updates: While Singapore authorities have cleared Zepto’s move, the National Company Law Tribunal (NCLT) is set to hear the matter on January 17.
Industry First: If successful, Zepto will become the first quick commerce startup to go public, following the listing of its rivals’ parent companies, Zomato (Blinkit) and Swiggy (Instamart).
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Shift to Marketplace Model
Zepto is undergoing a significant operational overhaul, transitioning from a B2B model to a marketplace model under a newly established entity, Zepto Marketplace, registered in October 2024.
Zepto Marketplace was registered in October 2024, and the company’s operations will soon switch to the new model once the operational and regulatory nitty-gritty are sorted out, according to a PTI report citing sources.
The shift will enable Zepto to have a greater hold on quality control and service. Zepto is also set to soon launch “Thor”-a SaaS inventory management platform to further streamline operations, the report said.
The development comes as Zepto prepares for a public listing within this year.
Zepto’s peers like Blinkit and Swiggy Instamart already follow a marketplace model.
Under the current structure, Zepto licenses its brand name and operations to three companies: Geddit Convenience, Drogheria Sellers and Commodum Groceries. These three companies purchase their stock from Kiranakart Technologies Pvt Ltd and sell it to end consumers via the Zepto platform.
In essence, Kiranakart Technologies is a B2B company that sources and buys products directly from brands and sells them to Geddit Convenience, Drogheria Sellers and Commodum Groceries, Zepto’s three licensee companies. These companies then sell to the end consumer. For every sale that the three companies make using Zepto’s platform, they pay a licensing fee to the latter.
Thus, under the present B2B model, Zepto is the technology platform, serving as an intermediary between operators, sellers and delivery partners. Sellers list themselves on the platform while dark stores are franchise-managed and delivery partners are third-party rendering a gig.
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Zepto reported a 120 per cent increase in operating revenue to Rs 4,454 crore in FY24. The company also proposes to launch a separate app for Zepto Cafe, which is engaged in quick delivery of snacks and other food items.
Zepto’s valuation stands at USD 5 billion. In November 2024, it raised USD 350 million in a funding round that included investments from Indian HNIs, family offices, and leading financial institutions.
With business growing rapidly, Zepto is looking to expand to over 50 cities by next quarter from about two dozen cities right now.
