Zepto, a quick commerce startup, is preparing for its initial public offering (IPO), with intentions to file draft papers in March or April of this year. This marks a key milestone following Singapore's acceptance of the company's domicile shift to India. The transfer is an important milestone in Zepto's road to becoming an Indian company, demonstrating its commitment to complying with the country's policies and gaining public trust.
The National Company Law Tribunal (NCLT) will hold a key hearing on the reverse merger application required for the domicile move on January 17. Following this, the business has scheduled a board meeting for January 19 to decide the size of the IPO, designate bankers, and handle other relocation-related issues. Furthermore, Zepto is in the process of appointing independent board members as part of its preparations to go public.
Zepto's Rise as a "Indian Company"
In a recent interview with The Economic Times, Zepto CEO Aadit Palicha underlined that the company is not a "Amazon or Walmart" but proudly positions itself as an Indian enterprise. The emphasis on local ownership seeks to foster trust between Indian authorities, consumers, and shareholders. This decision is timely, considering the Indian government's increased scrutiny of foreign-owned fast commerce companies operating in the nation.
Zepto's Market Position
Zepto, founded by Stanford dropouts Aadit Palicha and Kaivalya Vohra, has quickly emerged as one of India's fastest-growing consumer internet companies.
According to a Motilal Oswal analysis, Zepto has a 29% market share in the quick commerce industry, trailing only Blinkit's 46%. Swiggy Instamart follows with a 24% market share, however the survey excludes Tata Group's BigBasket and Flipkart Minutes.
IPO Momentum
Zepto's IPO is expected to raise at least $450 million by mid-2025, according to recent reports. This value may be changed closer to the draft file. The company is actively working with investment bankers, including Wall Street titans such as Morgan Stanley and Goldman Sachs, to oversee the IPO process.
Zepto's financial position is strong, owing to a $350 million investment round in November, which increased its cash reserves to about $1.4 billion. CEO Palicha has certified that Zepto is entirely compliant with India's foreign direct investment (FDI) requirements, demonstrating the company's commitment to local ownership.
The company's emphasis on Indian ownership and excellent market positioning distinguishes it as it prepares for this critical milestone in its growth journey.
