Quick commerce platform Zepto has recently completed its transition from being domiciled in Singapore to India, marking a significant milestone in its journey. The company’s CFO, Ramesh Bafna, shared this exciting news, highlighting the move as a strategic shift that sets the stage for Zepto’s upcoming initial public offering (IPO).
This move, known as a reverse flip, allows Zepto to establish its headquarters in India and kickstart the process for its IPO, which has been in the works for some time now. With the approval from the National Company Law Tribunal (NCLT) secured, Zepto is gearing up to raise approximately $400-500 million through its IPO, with Goldman Sachs, Morgan Stanley, and Axis Capital onboard as its bankers.
In a recent Linkedin post, Bafna expressed his delight at the successful completion of the #IndiaFirst reverse merger, emphasizing the meticulous planning, execution, and strategic decision-making involved in this crucial transition. Zepto now joins the league of Groww and PhonePe, who have also relocated their domicile to India from the US and Singapore, respectively.
While the exact tax implications of this reverse flip remain undisclosed by Zepto, past cases like PhonePe, which paid Rs 8,000 crore, and Groww, which paid Rs 1,340 crore in taxes for a similar transition, shed light on the potential financial considerations involved.
Zepto’s recent funding round led by Motilal Oswal Private Wealth, which raised $350 million at a valuation of $5 billion, coupled with its total funding of $1.85 billion since inception, underscores the investor confidence and market potential the company holds. Additionally, Zepto’s impressive financial performance, with revenue surging to Rs 4,454 crore in FY24 from Rs 2,026 crore in FY23, reflects its growth trajectory and market positioning.
As Zepto navigates this pivotal transition and gears up for its IPO, the startup ecosystem eagerly awaits the next chapter in its success story.
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### Conclusion
Zepto’s successful reverse flip from Singapore to India marks a significant milestone in its growth journey, setting the stage for its upcoming IPO and solidifying its position in the fast-paced world of quick commerce platforms. With a strong financial backing, strategic partnerships, and a growing market presence, Zepto is poised for continued success in the competitive startup landscape.
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#### Frequently Asked Questions
1. How did Zepto transition from Singapore to India?
– Zepto completed a reverse flip, relocating its domicile from Singapore to India.
2. What is Zepto’s plan regarding its IPO?
– Zepto aims to raise approximately $400-500 million through its IPO.
3. Which companies have previously undergone a similar reverse flip?
– Companies like Groww and PhonePe have also relocated their domicile to India.
4. What was Zepto’s recent funding round amount?
– Zepto raised $350 million in its recent funding round led by Motilal Oswal Private Wealth.
5. How has Zepto’s revenue performance evolved?
– Zepto’s revenue surged to Rs 4,454 crore in FY24 from Rs 2,026 crore in FY23.
6. Who are Zepto’s banking partners for the IPO?
– Goldman Sachs, Morgan Stanley, and Axis Capital are Zepto’s bankers for the IPO.
7. What role did the National Company Law Tribunal (NCLT) play in Zepto’s transition?
– NCLT provided approval for Zepto’s reverse merger, facilitating the shift to India.
8. What are the tax implications of a reverse flip?
– The tax implications depend on the company’s valuation and third-party audits.
9. How does Zepto’s funding history reflect its growth trajectory?
– Zepto has secured a total funding of $1.85 billion since its inception, reflecting investor confidence.
10. What does Zepto’s transition signify for the Indian startup ecosystem?
– Zepto’s transition showcases the growing trend of startups relocating to India and highlights the country’s conducive business environment.
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Tags: Zepto, quick commerce platform, reverse flip, IPO, funding, startup ecosystem, Indian startup community, NCLT, growth trajectory.
