Zepto Strategic Shift from Singapore to India Ahead of IPO

Quick commerce company Zepto has achieved a significant milestone by completing its reverse flip from Singapore to India, a move that aligns with its plans for an Initial Public Offering (IPO). This transition brings the company’s parent entity, Kiranakart Pte Ltd, under Indian jurisdiction, which is seen as a crucial step for accessing domestic capital markets – Zepto IPO.

Official Announcement and Market Significance

Zepto’s Chief Financial Officer (CFO), Ramesh Bafna, took to social media platform X (formerly Twitter) to confirm the completion of this corporate restructuring. He referred to it as a “#GharWapasi template for the startup ecosystem,” hinting at the broader implications for other India-origin companies incorporated overseas. Bafna further highlighted that this move could streamline future IPO pipelines for similar startups looking to list on Indian exchanges.

Fast-Tracked Reverse Merger

Bafna’s post referred to this as the “FastestEver” reverse merger, showcasing the efficiency with which Zepto executed the shift. He attributed the success to:

• Deep technical understanding of corporate structuring
• Collaboration with the right partners for execution
• Addressing potential delays proactively
• A well-empowered team that navigated tactical challenges in real time

The National Company Law Tribunal (NCLT) had earlier approved the merger between Singapore-based Kiranakart Pte Ltd and Kiranakart Technologies Ltd in India, clearing the way for Zepto’s new corporate domicile as a result it strengthens its prospect for Zepto IPO. 

Zepto’s Financial Performance

Zepto has been on a rapid growth trajectory. In FY24, the company recorded a more than two-fold revenue increase to ₹4,454 crore, compared to ₹2,025 crore in the previous fiscal year. Despite aggressive expansion, the firm has marginally reduced its losses to ₹1,248.6 crore in FY24 from ₹1,272.4 crore in FY23, according to a news report. 

Implications for India’s Startup Ecosystem

Zepto’s move is part of a broader trend where Indian startups are shifting their domicile back to India, especially as regulatory frameworks evolve and domestic capital markets become more attractive. With increased scrutiny on overseas incorporations and a stronger push for local listings, reverse flipping could become a preferred strategy for companies seeking IPOs in India.

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