Zepto shifts headquarters from Singapore to India ahead of IPO
What's the story
Zepto, a leading player in the quick commerce space, has shifted its headquarters from Singapore to India.
The company's CFO, Ramesh Bafna, confirmed the strategic move earlier today in a post on LinkedIn.
The decision comes as part of the firm's preparations for its upcoming initial public offering (IPO).
Bafna described the transition as "historic scenes on completion of... reverse merger from Singapore to India in the fastest ever timeline."
Team effort
Zepto's relocation: A testament to effective teamwork
Bafna lauded the successful relocation as a testament to the team's technical understanding, collaboration with suitable partners, and efficient execution.
He emphasized their ability to overcome potential delays and make strategic decisions in real time.
Bafna also hinted that this move could be a model for other start-ups contemplating a similar transition, possibly paving the way for increased access to capital markets.
Corporate restructuring
Kiranakart Technologies may soon become Zepto's holding company
Mumbai-based Kiranakart Technologies Private Ltd may soon become Zepto's holding company.
The move is pending approval from its board of directors and shareholders.
Earlier, the Indian entity served as a subsidiary of Singapore-based Kiranakart Pte Ltd.
This transition will simplify the holding structure, making future fundraising from Indian and foreign investors easier.
Operational efficiency
Zepto's relocation streamlines decision-making
Zepto's relocation also streamlines decision-making and fundraising negotiations.
It will eliminate administrative functions and multiple record keeping, thereby reducing administrative, managerial, and other common expenditure. This is expected to positively impact the firm's financial health.
The Indian entity will not require a no objection certificate (NOC) from the Reserve Bank of India (RBI), as is sometimes required in similar cases of reverse flips.
Funding success
Zepto raises $350M in largest-ever domestic funding round
Zepto's domicile switch comes a couple of months after the company raised $350 million in November 2024.
The funding round, led by Motilal Oswal's private wealth division, marked the largest 100% domestic fundraising in India's start-up ecosystem.
As per reports, Zepto is also planning to increase its IPO size to between $800 million and $1 billion, including secondary shares.