Zepto, a quick commerce major led by Aadit Palicha, has recently completed a significant reverse merger from Singapore to India, setting the stage for an upcoming initial public offering that is anticipated to raise a substantial sum between $400 million and $500 million. This strategic move, often referred to as a reverse flip, has received the green light from the courts in Singapore and India’s National Company Law Tribunal (NCLT), as confirmed by co-founder & CEO Palicha.
Zepto’s Chief Financial Officer, Ramesh Bafna, took to LinkedIn to express his excitement about this milestone, emphasizing the intricate details and strategic decisions that led to the successful completion of the process. Describing it as a "historic" achievement, Bafna highlighted the speed at which it was executed, marking it as the fastest-ever timeline for such a merger.
The NCLT officially authorized KiranaKart Technologies Private Ltd.—Zepto’s Indian operating entity—to transition into the firm’s holding company, a significant shift from its previous structure under KiranaKart Pte Ltd in Singapore.
Joining the league of other prominent Indian startups, Zepto now stands alongside industry giants like Groww and PhonePe, all of whom have made the strategic decision to domicile back to India. This move signifies a pivotal moment for the Indian startup ecosystem, showcasing the confidence in the country’s capital markets and the long-term benefits for Indian shareholders.
While specific details regarding tax payments related to the reversal were not disclosed, Zepto recently secured a substantial $350 million in funding, led by Motilal Oswal Private Wealth, valuing the startup at $5 billion. With plans to go public in the latter half of 2025, Zepto reported a significant increase in revenue from operations for the fiscal year ending March 2024, reflecting a positive growth trajectory.
In conclusion, Zepto’s reverse merger and shift back to India represent a landmark moment in the startup landscape, underscoring the growing confidence in Indian markets and the potential for long-term growth and success.
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Frequently Asked Questions
- What is the significance of Zepto’s reverse merger from Singapore to India?
- Zepto’s reverse merger marks a strategic shift back to India, paving the way for an upcoming initial public offering and showcasing confidence in the Indian market.
- How did Zepto’s CFO react to the completion of the reverse merger?
- Zepto’s CFO, Ramesh Bafna, described the process as historic and highlighted the importance of strategic decisions and timely execution.
- What approvals were required for Zepto’s reverse merger?
- The reverse merger received formal approval from Singapore courts and India’s National Company Law Tribunal (NCLT), allowing Zepto to transition its Indian operating entity into the holding company.
- What other high-profile Indian startups have shifted their domicile back to India?
- Zepto now joins the ranks of other prominent Indian startups like Groww and PhonePe, all of whom have chosen to domicile back to India.
- What funding milestone did Zepto recently achieve?
- Zepto secured $350 million in funding, led by Motilal Oswal Private Wealth, valuing the startup at $5 billion.
- When does Zepto plan to go public?
- Zepto aims to go public in the second half of 2025, following its successful reverse merger and shift back to India.
- What were Zepto’s revenue figures for the fiscal year ending March 2024?
- Zepto reported revenue from operations of Rs 4,454 crore for the fiscal year ending March 2024, showcasing significant growth from the previous year.
- How have losses changed for Zepto during the same period?
- Despite the increase in revenue, Zepto’s losses decreased by 2% to Rs 1,248.64 crore for the fiscal year ending March 2024.
- What does Zepto’s shift back to India signify for the startup ecosystem?
- Zepto’s move back to India represents a historic milestone for the Indian startup ecosystem, highlighting confidence in the country’s capital markets and long-term growth potential.
- What is the expected outcome of Zepto’s upcoming initial public offering?
- Zepto’s initial public offering is anticipated to raise between $400 million and $500 million, marking a significant financial milestone for the quick commerce unicorn.
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Tags: Zepto, quick commerce, startup, reverse merger, initial public offering, India, Singapore, funding, growth, Indian market
- Zepto’s initial public offering is anticipated to raise between $400 million and $500 million, marking a significant financial milestone for the quick commerce unicorn.
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