Zepto, the rapidly growing quick-commerce startup, has established a new entity called Zepto Marketplace Private Limited, a move aimed at streamlining its operations ahead of its anticipated IPO later this year, as per sources close to the situation.
Zepto’s New Strategy
Currently, Zepto operates on a business-to-business (B2B) model. Its Indian subsidiary, Kiranakart Technologies Pvt Ltd, founded by Aadit Palicha and Kaivalya Vohra, sources products from brands and sells them exclusively to a select group of companies that manage the Zepto platform for consumer-facing sales.
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In contrast, competitors like Blinkit (owned by Zomato) and Swiggy Instamart have already embraced a marketplace model, where multiple sellers list their products directly to consumers.
The Launch of Zepto Marketplace Private Limited
Zepto seems ready to follow this trend. It registered Zepto Marketplace Private Limited on October 22, 2024, indicating a likely shift from its current B2B structure. This change would bring Zepto’s business operations more in line with its publicly traded competitors, Blinkit and Swiggy Instamart, as it prepares for a potential listing in India later this year.
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“Zepto’s current structure is somewhat unclear, and it seems the company wants to simplify its model to provide greater transparency for investors before its IPO,” one source explained. “By launching a separate entity like Zepto Marketplace Pvt Ltd, the company can reorganize its operations to match the more familiar marketplace model used by rivals Blinkit and Instamart. Once this shift is complete, it will be easier for investors to evaluate Zepto’s performance alongside its competitors and make more informed comparisons,” the source added.
