Zepto IPO – Zepto, the rapidly growing quick-commerce unicorn, has established a new entity, Zepto Marketplace Private Limited, in order to streamline its operations in preparation for its upcoming IPO later this year, according to sources familiar with the situation.
Zepto IPO Under Final Stage of Preparation
Currently, the company operates under a business-to-business (B2B) model. Its Indian division, Kiranakart Technologies Pvt Ltd, was founded by Aadit Palicha and Kaivalya Vohra. This division procures goods from various brands and exclusively sells them to a select group of companies that manage the Zepto platform under a licensing agreement for consumer sales.
In contrast, competitors such as Zomato-owned Blinkit and Swiggy Instamart have adopted a marketplace approach, allowing multiple sellers to list products directly for consumers.
Zepto seems to be following this trend by registering Zepto Marketplace Private Limited on October 22, 2024, indicating a potential shift away from its current B2B model. This move would bring Zepto’s operations more in line with its publicly listed competitors, Blinkit (owned by Zomato) and Swiggy Instamart (part of Swiggy), as it prepares for an IPO in India later this year.
According to sources, the current business model of the company is somewhat unclear, and the company likely aims to make it more transparent and understandable for investors before going public. By establishing a separate entity, Zepto Marketplace Pvt Ltd, the company is expected to reorganize its operations to align with the well-known business models of Blinkit and Swiggy Instamart. This alignment will enable investors, particularly those in the public market, to better evaluate its performance metrics compared to its competitors.
In conclusion, the establishment of Zepto Marketplace Private Limited signifies a strategic move by the company to enhance transparency, streamline operations, and position itself favorably for its upcoming IPO.
However, another source familiar with its operations clarified that the new entity has been registered solely to transfer the internet platform and intellectual property (IP) that the company has developed on the tech side. This individual explained that segregating the tech business onto a separate balance sheet will facilitate the differentiation of various units within the company.
Despite the establishment of a new entity, it continues to operate its e-commerce platform utilizing the transferred IP. The source emphasized that the business model remains fundamentally unchanged.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.