IPO-bound Zepto gets approval to shift domicile back to India
What's the story
The National Company Law Tribunal (NCLT) has approved the merger of Kiranakart Technologies, the parent company of quick commerce platform Zepto, with its Singapore-based counterpart Kiranakart Pte Ltd.
Zepto's shift to Indian domicile will be finalized within 30 days. The move is also expected to accelerate Zepto's IPO plans in India.
The tribunal noted that "the scheme appears to be fair and reasonable and is not in violation of any provisions of law."
Strategic move
Merger to simplify Zepto's holding structure
The merger will simplify Zepto's holding structure, making it easier to attract future investment from domestic and international investors.
The company's legal representatives told the tribunal that this strategic move will also enable the firms to navigate the competitive regulatory landscape, manage risks and policies more effectively, consolidate value, and enhance shareholder returns.
Future prospects
IPO plans and potential benefits
Zepto intends to file its draft IPO papers by March or April. It has called a board meeting later this month to discuss the details.
The latest merger may lead to significant cost savings, speed up decision-making processes, and create a focused platform for future growth.
As part of its IPO preparations, Zepto is also finalizing independent directors for its board.
The company is expected to raise $400-500 million through its IPO.
Market debut
Journey toward becoming a public company
If successful, Zepto will become India's first standalone quick commerce firm to debut in the market.
The company had originally planned to raise at least $450 million through its IPO, but the amount could change as the draft IPO papers are filed.
In November 2024, Zepto raised $350 million, increasing its war chest to about $1.4 billion as it competes in the fast-growing market.