Zepto, the rapidly growing quick-commerce startup, is setting the stage for its much-anticipated IPO by establishing a new entity, Zepto Marketplace Private Limited. Officially registered on October 22, 2024, this move is a part of the company’s broader strategy to streamline its operations and prepare for its public debut within the next three to four months.

Currently operating with a business-to-business (B2B) approach, Zepto has been sourcing products directly from brands via its subsidiary, Kiranakart Technologies Pvt Ltd. The company has been distributing these goods to a select group of licensees, including Geddit Convenience, Drogheria Sellers, and Commodum Groceries, who then sell them through the Zepto platform.

However, the creation of Zepto Marketplace Private Limited marks a pivotal shift in the company’s business model. By setting up this new entity, Zepto appears to be embracing a marketplace model, akin to industry giants Blinkit (owned by Zomato) and Swiggy Instamart, both of which enable multiple sellers to list and sell products directly to consumers. This strategic move positions Zepto closer to its publicly listed counterparts and signals its readiness for greater scalability as it prepares for the IPO.

Reports suggest that Zepto is in the final stages of drafting its IPO documents, with plans to submit them by March or April. As part of this process, the company will also relocate its holding entity to India, following approval from Singapore. This shift is expected to bring Zepto closer to its home market and enhance its operational efficiency.

The company, which is headquartered in Bengaluru, has scheduled a board meeting for January 19, 2025, to finalize crucial decisions regarding the IPO, including the size of the offering, selection of investment bankers, and resolutions related to the entity shift. While Zepto initially aimed to raise $450 million, this figure is expected to be adjusted based on the finalization of the IPO documents.

Zepto recently concluded a successful funding round in November, raising $350 million, which brought its total cash reserves to an impressive $1.4 billion. This significant infusion of capital places Zepto in a strong financial position as it faces mounting competition in the dynamic quick-commerce sector. Notably, leading Wall Street firms like Morgan Stanley and Goldman Sachs are already engaged in discussions with Zepto about its IPO, marking a critical step in the company’s journey towards becoming a publicly traded entity.

As Zepto readies itself for the next phase of its evolution, this move towards a marketplace model could prove to be a game-changer in the rapidly expanding and highly competitive quick-commerce industry.