Quick commerce company Zepto is reportedly accelerating its plans for an initial public offering (IPO), aiming to file draft papers by March or April this year. This follows securing approval from Singapore for its domicile transfer to India, a key step required for the process. According to a report in Economic Times, “A crucial hearing is slated on January 17 at the NCLT on its reverse merger application to move domicile from Singapore to India. The Singapore clearance is a significant approval to secure as part of moving domicile to India.
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A board meeting is also eportedly planned for January 19 to discuss the IPO’s size, appoint bankers, and address other resolutions related to the holding company’s relocation. Zepto is also finalizing the appointment of independent board members in preparation for going public. This IPO would make Zepto the third major quick commerce player to list in India, after Zomato and Swiggy.
Zepto is not an “Amazon or Walmart”
In an interview with Economic Times recently, Zepto CEO Aadit Palicha said that Zepto is not an “Amazon or Walmart” but an Indian company. Zepto’s focus on domestic ownership is said to be driven by a desire to build trust with policymakers in the country, the public, and shareholders. This move also reportedly aligns with the Indian government’s increasing scrutiny of foreign-owned quick-commerce companies and their operations in India.
“Second biggest Qcommerce company” in India
Founded by Stanford University dropouts Palicha and Kaivalya Vohra, Zepto has emerged as one of the fastest-growing consumer internet firms in India. According to a recent report by Motilal Oswal, Zepto is the second largest player in the sector with a 29% share in the quarter ended June 30, after Blinkit which had a 46% share. The report – which did not include Tata Group BigBasket and Flipkart Minutes – pegged Swiggy Instamart’s market share at 24%.
All set for the Big IPO
As previously reported by the ET, Zepto has been in discussions with bankers regarding a potential mid-2025 IPO, initially aiming to raise at least $450 million. This target may be adjusted closer to the draft filing. Sources indicate Zepto is heavily engaged in the IPO process, with the upcoming board meeting focusing on these plans. The reverse merger approval and the subsequent transition to a public limited company are necessary steps before filing for the IPO. ET also reported that Wall Street banks like Morgan Stanley and Goldman Sachs are among those vying for roles in Zepto’s IPO.
Following a $350 million funding round in November, Zepto’s cash reserves stand at approximately $1.4 billion, positioning it to compete with rivals and new entrants like Flipkart Minutes. CEO Aadit Palicha confirmed the company’s full compliance with Indian foreign direct investment (FDI) regulations and emphasized their move towards local ownership. In approximately six months, the company raised over $1 billion.
