Zepto has launched Zepto Marketplace Private Limited to enhance operations ahead of its IPO, targeted for the second half of 2025. This B2B model contrasts with competitors using marketplace models. Zepto reported a 120% revenue increase, showcasing significant growth, and plans to streamline operations further in preparation for going public.
In preparation for its upcoming initial public offering (IPO), Zepto has established a new entity named Zepto Marketplace Private Limited, with the aim of optimizing its operational structure. This entity was officially registered on October 22, 2024, as reported by Moneycontrol and confirmed by sources to Business Standard.
Currently, Zepto functions under a business-to-business (B2B) framework. Co-founded by Aadit Palicha and Kaivalya Vohra, Kiranakart Technologies sources products directly from manufacturers, distributing them to several licensee entities, including Geddit Convenience, Drogheria Sellers, and Commodum Groceries, which in turn offer these products via a licensing arrangement.
In contrast, competitors such as Blinkit and Swiggy Instamart have embraced a marketplace model. For instance, Blinkit relies on intermediaries like Hands On Trade and 90Minutes Retail to acquire products from suppliers and distribute them to B2B wholesalers. Similarly, Swiggy Instamart secures goods from B2B wholesalers, who subsequently supply dark store operators for further distribution to B2C vendors on the platform.
As part of its IPO preparations, Zepto has enlisted investment banks including Goldman Sachs, Morgan Stanley, and Axis Capital as advisors, targeting a public offering in the second half of 2025. In contrast, its rivals Blinkit and Instamart have already entered the public market.
Zepto has achieved notable success, reporting a 120 percent increase in operating revenue, reaching Rs 4,454 crore in FY24, surpassing Blinkit and Swiggy Instamart’s revenues of Rs 2,300 crore and Rs 1,100 crore respectively. A report from Motilal Oswal indicates that Blinkit holds a 46 percent market share in the quick commerce sector, followed by Zepto with 29 percent and Swiggy Instamart at 25 percent.
Founded in 2021, Zepto became India’s first unicorn in 2023, raising $200 million at a valuation of $1.4 billion.
The recent developments at Zepto come as the company gears up for its IPO, a significant milestone that requires operational refinement. By forming Zepto Marketplace Private Limited, the firm seeks to streamline its processes, positioning itself competitively against established players like Blinkit and Swiggy Instamart. Understanding the dynamics of the quick commerce market is crucial, as it informs Zepto’s strategic direction and operational adjustments.
In summary, Zepto’s establishment of a new entity ahead of its IPO is aimed at enhancing operational efficiency. As it approaches the public offering, Zepto demonstrates strong growth and market positioning, outpacing its competitors in operational revenue and market share. With strategic advisors in place for the IPO, Zepto’s future trajectory appears promising within the quick commerce industry.
Original Source: www.business-standard.com
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