Zepto Relocates Base to India in Pre-IPO Restructuring

Zepto, the quick commerce unicorn, is set to establish its Indian subsidiary, Kiranakart Technologies Private Limited, as the holding company. This strategic decision, approved by the National Company Law Tribunal (NCLT), marks a significant step toward its anticipated Initial Public Offering (IPO) later this year.

Shift to India: NCLT Approves Reverse Flip

The NCLT order dated January 9, 2025, approved Zepto’s restructuring plan to relocate its base to India. Earlier a subsidiary of Singapore-based Kiranakart Pte. Ltd., this move aligns with the company’s board and shareholders’ vision to enhance stakeholder interests. The board initially approved the scheme on October 3, 2024. The decision aims to rationalise the group structure, improve business synergies, and enable faster decision-making, resulting in cost savings and a streamlined operational framework.

The reverse flip also eliminates the need for a no-objection certificate (NOC) from the Reserve Bank of India (RBI), simplifying compliance. This transition allows the company to focus on its growth in India’s competitive quick commerce market.

Preparations for IPO and Future Growth

As Zepto gears up for its IPO, it plans to raise $400-$500 million with the support of leading bankers like Goldman Sachs, Morgan Stanley, and Axis Capital. To increase domestic shareholding, the company has already secured ₹2,900 crore from Indian investors such as Motilal Oswal.

The restructuring will not only ease fundraising and decision-making but also reduce administrative expenses significantly. These developments come on the heels of Zepto raising $1.35 billion in funding to compete with market giants like Zomato’s Blinkit and Swiggy Instamart.

Conclusion

Zepto’s decision to relocate its holding company to India highlights its commitment to the domestic market and positions the company for a robust IPO. 

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