Mumbai-based quick commerce platform Zepto completes domicile shifting from Singapore to India. This shift marks a strategic milestone as the company readies itself for a potential IPO later in 2025. The announcement came on 28 January 2025, from CFO Ramesh Bafna, who called the accomplishment “historic” and achieved in “record time.”
A Rapid Transition
Zepto’s relocation is notable not only for its speed but also for its alignment with India’s evolving regulatory environment. The shift, expedited by recent government reforms, underscores the growing trend of startups repatriating their headquarters to capitalize on India’s burgeoning startup ecosystem. Zepto now joins the ranks of PhonePe, Groww, and Razorpay, who have also made similar moves.
Bafna credited the swift transition to a skilled and empowered team that overcame logistical challenges and expedited decision-making. He highlighted the importance of precision and collaboration, describing the process as “getting into the nuts and bolts of execution.”
Approval Timeline
The transition was facilitated by approvals from both Singapore and Indian regulatory bodies. Singapore’s authorities cleared the move on 7 January 2025, followed by a nod from India’s National Company Law Tribunal (NCLT) on 9 January. Importantly, the company bypassed the need for an RBI no-objection certificate, further accelerating the process.
The shift involved merging Zepto’s Singapore-based holding company, KiranaKart Pte Ltd, with its Indian counterpart. This restructuring streamlines the company’s operations and positions it to raise capital more effectively from domestic and global investors.
Zepto IPO Plans in Motion
Zepto is now preparing to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by March or April 2025. Reports suggest the company could raise between USD 400 to USD 1.1 billion (~INR 3,450 to INR 9,520 crore), supported by financial institutions like Goldman Sachs, Morgan Stanley, and Axis Capital.
Currently valued at USD 5 billion, Zepto’s last funding round, led by Motilal Oswal Private Wealth in 2024, raised USD 350 million. In total, the company has secured USD 1.85 billion in funding since its inception.
Financial Performance
The company’s financials reveal strong growth. Revenue surged 2.2x to INR 4,454.52 crore in FY24 from INR 2,025.70 crore in FY23, driven by growing demand for ultra-fast deliveries. Net losses narrowed by 2% to INR 1,248.64 crore during the same period. This improvement reflects Zepto’s focus on scaling while optimizing operational efficiency.
A Growing Trend
Zepto’s move is part of a broader wave of startups returning to India from overseas jurisdictions like Singapore and the US. This shift is fueled by a maturing startup ecosystem, a robust IPO market, and government reforms easing the reverse-flipping process.
The Indian government’s 2024 amendments to the company’s rules simplified the merger of foreign holding companies with their Indian subsidiaries. This regulatory clarity has encouraged startups to realign their corporate structures with India’s evolving investment climate.
For Zepto, the relocation isn’t just logistical—it’s strategic. The move reduces structural complexities, trims managerial costs, and enhances fundraising potential. With a streamlined legal framework, Zepto is well-positioned to compete aggressively in India’s quick commerce market while leveraging the country’s capital markets for growth.
The Road Ahead
As the company targets an IPO in late 2025, Zepto domicile shift strengthens its foundation for future growth. With robust financials and a simplified corporate structure, the company is poised to attract investor confidence as it transitions into a public entity.
Zepto’s move reflects the growing maturity of India’s startup ecosystem. Regulatory reforms, coupled with an influx of investor interest, are setting the stage for unprecedented opportunities. Zepto’s trajectory highlights the potential of quick commerce to redefine consumer habits and economic growth in India.
