IPO · Commerce & Consumer Brands

Zepto sets up new entity ahead of IPO

By Startup Enthusiast · 2 January 2025

What they do

Zepto operates a quick-commerce platform for grocery and essentials delivery

It registered Zepto Marketplace Private Limited on 22 October 2024 to streamline operations before a planned IPO later in 2025

The new entity may signal a shift from a B2B model to a marketplace where multiple sellers list directly for customers

Zepto registered a new entity called Zepto Marketplace Private Limited on 22 October 2024.
The new entity is created to streamline operations ahead of a planned IPO later in 2025.
Currently, Zepto operates as a B2B company via Kiranakart Technologies Pvt Ltd, buying from brands and selling only to three licensee firms: Geddit Convenience, Drogheria Sellers, and Commodum Groceries.
The three licensee firms pay Zepto a fee per sale and then sell to end consumers on the Zepto platform.
The new entity could signal a shift to a marketplace model where multiple sellers list goods directly for customers.
One source says the new entity is purely to transfer tech IP and the online platform to a separate balance sheet, not a model change.
Zepto has already added more sellers and plans to reduce reliance on the three licensee firms.

Indian quick-commerce market is valued at $6 billion.
Zepto's FY24 revenue was ₹4,455 crore, higher than Blinkit's ₹2,301 crore and Swiggy Instamart's ₹1,100 crore.
Zepto is planning a $500 million IPO expected in H2 2025 and has selected Goldman Sachs, Morgan Stanley, and Axis Capital as advisors.
Competitors Blinkit and Swiggy Instamart use extra seller/distributor layers that Zepto currently lacks.

Zepto operates a quick-commerce platform for grocery and essentials delivery.
It operates as a B2B company via Kiranakart Technologies Pvt Ltd, buying from brands and selling only to three licensee firms.
The three licensee firms pay Zepto a fee per sale and then sell to end consumers on the Zepto platform.
Zepto's GMV for FY24 was approximately ₹5,500–6,000 crore.
At a 15–20% take rate, comparable revenue would be ₹870–1,150 crore.
Zepto's FY24 revenue was ₹4,455 crore.
Zepto is launching a separate food delivery app and expanding to new geographies.

Zepto plans to launch a separate food delivery app.
It is expanding to new geographies.
The company is planning a $500 million IPO expected in H2 2025.
It has selected Goldman Sachs, Morgan Stanley, and Axis Capital as IPO advisors.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.