Acquisition · Commerce & Consumer Brands

Zepto parent merges with Singapore unit ahead of IPO

By Startup Enthusiast · 13 January 2025

What they do

Zepto operates a quick commerce platform delivering groceries and essentials to customers in India

The NCLT approved a cross-border merger moving the holding company from Singapore to India for regulatory ease

This structural change supports Zepto's plan to file for an IPO targeting $400-500 million in fundraising

The NCLT Mumbai bench approved the cross-border merger of Kiranakart Technologies with its Singapore unit on Jan 9, 2025.
This approval makes the Indian entity the primary holding company for the Zepto group after regulatory clearance.
The merger does not require an RBI no-objection certificate because it falls under deemed prior approval rules.
Singaporean officials have already approved the parallel merger application while Registrar approval remains pending.
Zepto aims to submit draft documents for an IPO in March or April 2025 following this restructuring.
The company targets raising $400-500 million through the upcoming public offering process.
Goldman Sachs, Morgan Stanley, and Axis Capital are acting as bankers for the planned IPO.
A new marketplace entity was incorporated to streamline business operations alongside the merger formalization.

Zepto is joining peers like Groww and Razorpay in executing reverse flips to domicile in India.
Moving the holding structure to India simplifies compliance for future international investor participation and listings.
The restructuring aligns with Zepto's aggressive growth strategy and imminent plans for a public listing.
Regulatory clarity via NCLT approval removes a key hurdle before the final domicile transfer is completed.

Zepto provides quick commerce services delivering groceries and daily essentials to consumers across Indian cities.
The B2B arm supplies products directly from manufacturers to licensee businesses under brands like Comodum Groceries.
Licensee brands include Geddit Convenience and Drogheria Sellers which operate physical retail outlets.
The company generates revenue through direct sales and distribution margins within its supply chain network.
Revenue reached Rs 4,454 crore in FY24 showing significant year-over-year growth compared to previous years.
Operating losses stood at Rs 1,248.6 crore in FY24 representing a slight decrease from the prior year.
Total funding raised since launch is approximately $2 billion supporting rapid expansion and infrastructure development.
The business model relies on a dense network of dark stores to ensure fast delivery times.

Zepto expects to complete domicile transfer formalities within 30 days of the NCLT order.
The company plans to file draft documents for its IPO by March or April 2025.
Registrar approval from Singapore authorities is still pending to finalize the cross-border merger.

Motilal Oswal Private Wealth (lead) — Led the latest **$350 million** funding round for Zepto.
Goldman Sachs (participated) — Acting as an IPO banker for the upcoming public offering.
Morgan Stanley (participated) — Acting as an IPO banker for the upcoming public offering.

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.