Zepto has established Zepto Marketplace Private Limited to streamline operations ahead of its IPO, aiming for a launch in late 2025. The company has seen a 120 percent revenue increase, reaching Rs 4,454 crore, placing it second in the quick commerce market. Founded in 2021, Zepto achieved unicorn status in 2023 with a $1.4 billion valuation.
In anticipation of its initial public offering later this year, Zepto has established a new subsidiary, Zepto Marketplace Private Limited, as reported by sources to Business Standard. This entity was officially registered on October 22, 2024. Zepto’s initiative aims to enhance operational efficiency ahead of its IPO, which is projected for the latter half of 2025.
Currently, Zepto operates primarily on a business-to-business (B2B) framework, sourcing products directly from brands. The company, founded by Aadit Palicha and Kaivalya Vohra, distributes products to licensed firms such as Geddit Convenience and Drogheria Sellers. These firms then sell products to consumers through Zepto’s platform under a licensing agreement.
In contrast, rivals such as Blinkit and Swiggy Instamart have adopted a marketplace model. Blinkit collaborates with intermediaries like Hands On Trade, who procure goods from brands and distribute them to B2B wholesalers. These wholesalers subsequently supply products to business-to-consumer (B2C) sellers on the Blinkit platform.
Swiggy Instamart follows a similar model, engaging B2B wholesalers that provide inventory to dark store operators. These operators manage distribution to B2C sellers affiliated with the Instamart platform. In this competitive landscape, Zepto recently reported a remarkable 120 percent increase in operating revenue, achieving Rs 4,454 crore in FY24, outpacing Blinkit and Swiggy Instamart’s revenues significantly.
According to a report by Motilal Oswal, Zepto holds a 29 percent market share in the quick commerce sector, alongside Blinkit, which leads with 46 percent, and Swiggy Instamart at 25 percent. Zepto, recognized as India’s first unicorn in 2023, raised $200 million, reaching a valuation of $1.4 billion.
Zepto, a quick commerce company founded in 2021, rapidly emerged as a significant player in the Indian market and achieved unicorn status in 2023. The company’s operational model contrasts with that of its competitors, Blinkit and Swiggy Instamart, which have successfully implemented a marketplace structure. Zepto’s recent establishment of a new entity aims to streamline its processes and further solidify its market position as it prepares for an anticipated IPO.
In summary, Zepto’s establishment of Zepto Marketplace Private Limited reflects its strategic aim to optimize operations in preparation for its forthcoming IPO. Despite competition in the quick commerce sector, Zepto has shown remarkable growth in revenue and market share, establishing itself as a key player. As the company moves towards its IPO, its operational adjustments may further enhance its competitive positioning.
Original Source: www.business-standard.com
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