Zepto to file IPO draft papers by March-April as it transitions to marketplace model | Company Business News
Quick commerce platform Zepto is likely to file its initial public offering (IPO) draft papers in March or April this year, the Economic Times reported citing sources. The delivery company has already secured the required permissions to shift its base to India from Singapore, it added.
Details of the IPO are not finalised, and the company has called for a board meeting on January 19 to discuss which bankers to appoint, choosing independent directors, the size of the IPO and other finer points, it added.
Notably, while Singapore authorities have cleared the move, the National Company Law Tribunal (NCLT) is scheduled to hear the matter on January 17, as per the report.
If everything goes according to plan by April, Zepto will become the first quick commerce start-up to go public after food delivery platforms Zomato (Blinkit) and Swiggy (Instamart), which are parent companies to rivals listed.
Zepto Marketplace in Works
Maenwhile, Zepto has set up a new entity Zepto Marketplace to rework its operations from a business-to-business (B2B) model to a marketplace model, sources told PTI.
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, sources said.
A mail query sent to the company did not elicit any response.
Sources added that the shift would enable Zepto to have a greater hold on quality control and service.
How Current Structure Functions
Notably, Zepto’s competition Blinkit and Instamart follow a marketplace model. While 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 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.
