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Zepto Completes Reverse Flip from Singapore to India, Preparing for IPO

Zepto, the fast-growing quick commerce platform, has successfully completed its transition from Singapore to India, marking a significant milestone for the Mumbai-based company. The move is set to pave the way for Zepto’s initial public offering (IPO) and solidifies its presence in the Indian market.

This transition, known as a “reverse flip,” comes after months of planning and execution, positioning Zepto to expand its operations further and tap into India’s growing e-commerce and retail sector. The decision follows Zepto’s recent approval from the National Company Law Tribunal (NCLT) for a reverse merger, which is a key step in shifting its headquarters back to India.

The Reverse Flip: Zepto’s Strategic Move

Zepto’s move from Singapore to India is more than just a change of location; it’s a strategic decision that aligns with the company’s long-term growth plans. The reverse flip will allow Zepto to leverage India’s thriving digital economy while preparing for an eventual IPO.

The company’s Chief Financial Officer, Ramesh Bafna, took to LinkedIn to celebrate the completion of the process, describing it as a testament to Zepto’s ability to execute complex business moves efficiently. In his post, Bafna praised the team for their execution, calling it a display of technical know-how and tactical decision-making.

Zepto quick commerce India

“We’ve completed this transition in the fastest-ever timeline,” Bafna wrote. “This is a display of understanding of technicals, working with the right partners, and unblocking any causes of delay in real time.”

Notably, Zepto is not the only company to make such a move. Other Indian fintech giants like Groww and PhonePe also shifted their domicile from abroad to India in recent years, a trend that highlights the increasing importance of India in the global tech and finance landscape.

What This Means for Zepto’s IPO

The timing of Zepto’s reverse flip is key, as the company is reportedly in the process of preparing for its much-anticipated IPO. Industry insiders estimate that Zepto aims to raise between $400 million and $500 million through the offering. To guide the company through this process, Zepto has enlisted top-tier investment banks like Goldman Sachs, Morgan Stanley, and Axis Capital, who will play a key role in making the IPO a success.

Zepto’s IPO comes after a series of successful funding rounds. The company raised $350 million in a recent round led by Motilal Oswal Private Wealth, bringing its valuation to $5 billion. Additionally, the company raised a staggering $1.35 billion in 2024, bringing its total funding to $1.85 billion since its inception. This robust financial backing places Zepto in an excellent position as it moves forward with its plans to list publicly.

Zepto’s Growth Trajectory and Financial Performance

Zepto’s performance in recent years has been nothing short of impressive. The company has seen significant growth in revenue, with its operations more than doubling from Rs 2,026 crore in FY23 to Rs 4,454 crore in FY24. This 2.2x surge in revenue is a strong indicator of Zepto’s ability to capture market share in India’s highly competitive quick-commerce space.

However, despite this impressive revenue growth, Zepto still faces challenges. The company’s losses for FY24 were slightly reduced by 2%, totaling Rs 1,248.6 crore. While the company is clearly on an upward trajectory, it will need to continue expanding its revenue streams and managing its expenses effectively to eventually turn a profit.

The tax implications of Zepto’s reverse flip are still unclear, as the company has not disclosed the amount it paid for the transition. For comparison, PhonePe paid around Rs 8,000 crore, while Groww’s tax bill was Rs 1,340 crore. The tax payment depends on a company’s valuation, and given Zepto’s $5 billion valuation, its tax liability could be significant.

The Broader Picture: Zepto’s Position Among India’s Tech Giants

Zepto’s move from Singapore to India places it in a growing list of companies that have shifted their operations back home. Flipkart, KreditBee, Pine Labs, Razorpay, Meesho, and others have followed a similar path, as India’s tech sector continues to boom. This trend reflects the increasing importance of India as a global tech hub and the growing appetite for Indian tech stocks on the international stage.

Pine Labs, for example, received final approval from Singapore’s court to move its base to India, signaling that more companies are looking at India as the ideal destination for their future growth. As more companies follow suit, it is clear that India is becoming a central player in the global tech ecosystem.

With its strong backing, impressive revenue growth, and IPO on the horizon, Zepto is set to become one of the leading players in the Indian e-commerce market. The company’s move is seen as a positive signal to investors, and its future in India looks promising.

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