Zepto Eyes IPO by April, Plans Transition to Marketplace Model

 

Quick commerce startup Zepto is gearing up to file its draft papers for an initial public offering (IPO) by March or April this year, according to reports. The company has secured approvals to shift its base from Singapore to India, with the National Company Law Tribunal (NCLT) set to hear the matter on January 17. A board meeting scheduled for January 19 will finalize key details, including the appointment of bankers, IPO size, and selection of independent directors.

 

If successful, Zepto will be the first quick commerce platform to go public, following food delivery giants Zomato (Blinkit) and Swiggy (Instamart).

 

Transition to Marketplace Model

 

Zepto is also making a strategic shift from a business-to-business (B2B) model to a marketplace model under its newly registered entity, Zepto Marketplace, established in October 2024. This change is expected to enhance quality control and improve services, aligning Zepto with competitors like Blinkit and Instamart, which already operate on a marketplace framework.

 

Current Business Structure

 

Under its existing B2B model, Zepto licenses its platform to three companies: Geddit Convenience, Drogheria Sellers, and Commodum Groceries. These entities purchase stock from Kiranakart Technologies, Zepto’s sourcing arm, and sell directly to consumers via the Zepto platform. The platform earns licensing fees from these sales, while operations like dark stores are franchise-managed, and deliveries are handled by third-party gig workers.