Zepto recently has established a new entity, Zepto Marketplace Private Limited, in preparation for its Initial Public Offering (IPO) later this year. This strategic move is aimed at simplifying its operational structure and aligning its business model with publicly listed competitors like Blinkit and Swiggy Instamart.
Co-founded by Aadit Palicha and Kaivalya Vohra, Zepto currently operates under a Business-to-Business (B2B) framework through its Indian arm, Kiranakart Technologies. Goods are procured from brands and sold to three licensee companies—Geddit Convenience, Drogheria Sellers and Commodum Groceries—which, in turn, sell to end consumers via the Zepto platform.
Transitioning to a marketplace framework could also enable Zepto to diversify its seller base, reducing reliance on its three licensee firms and expanding its distribution network.
This restructuring is expected to enhance operational clarity, helping Zepto comply with India’s foreign direct investment (FDI) regulations and offering investors a clearer comparison with competitors.
The new entity comes as Zepto eyes a $500 million IPO, signaling its ambition to capture a larger share of India’s $6 billion quick-commerce market. The company is also diversifying its revenue streams, including launching a standalone food delivery app and expanding into new geographies.
With FY24 revenues of Rs 4,455 crore, Zepto outperformed Blinkit (Rs 2,301 crore) and Swiggy Instamart (Rs 1,100 crore), despite having a smaller market share and lower average order values.
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