Zepto Completes Reverse Flip from Singapore to India, Strengthening IPO Prospects

Zepto, a quick commerce company, has transitioned its parent entity from Singapore to India, marking a significant step towards its planned IPO. Co-founder and CEO Aadit Palicha shared on LinkedIn that this move is a pivotal moment for Indian startups, reflecting confidence in India's capital markets. "Today, we received formal approval from Singaporean courts and the NCLT in India to complete our cross-border merger and become an Indian parent entity!" he stated.

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The shift to India is seen as beneficial for Indian shareholders. Palicha praised the Zepto team and partners like Deloitte for their efforts in achieving this milestone. He emphasised Zepto's commitment to overcoming challenges and delivering results. "At Zepto, we have a habit of delivering what people say is impossible," Palicha added.

Zepto's Strategic Move

Zepto's CFO, Ramesh Bafna, also announced the completion of the reverse merger on LinkedIn. The transition of Kiranakart Pte Ltd's domicile to India is expected to serve as a model for other startups aiming to enter capital markets. Bafna described the process as "historic" and highlighted the team's technical expertise and strategic execution.

The National Company Law Tribunal (NCLT) had previously approved the merger of Singapore-based Kiranakart Pte Ltd with Kiranakart Technologies Ltd in India. This approval facilitated Zepto's transition to an Indian holding company. The Mumbai-based firm reported a revenue of Rs 4,454 crore for FY24, more than doubling from Rs 2,025 crore in the previous year.

Financial Performance

Zepto has managed to slightly reduce its losses, reporting Rs 1,248.6 crore in losses for 2023-24 compared to Rs 1,272.4 crore in 2022-23, according to data from Tofler. This financial improvement aligns with Zepto's strategic goals as it prepares for its IPO.

Bafna commended the team for their dedication and praised Palicha for his focus on clarity and empowerment within the team. "This is good hashtag#GharWapasi template for the startup ecosystem and overtime enables a great pipeline towards capital markets," Bafna noted.

The completion of this reverse merger underscores Zepto's understanding of technicalities and its ability to work with the right partners. By addressing potential delays and making tactical decisions promptly, Zepto has set a precedent for other startups considering similar moves.