Zepto Renames Its Registered Entity Ahead Of IPO

In line with its quick commerce peers Zomato and Swiggy, Zepto has now reportedly changed the name of its registered entity from Kiranakart Technologies Private Limited to Zepto Private Limited. 

A Moneycontrol report said that Zepto has received the regulatory nod from the Registrar of Companies for this move, ahead of its initial public offering slated for launch later this year.

Inc42 has reached out to the company for comments on the development. The story will be updated based on the response.

The move follows Zomato’s announcement earlier this year that its parent company, Zomato Limited, would change its name to Eternal Limited.  

While Swiggy, last year, before its IPO, changed its registered company name from Bundl Technologies Private Limited to Swiggy Private Limited. 

As a part of its IPO preparations, Zepto recently roped in Akhil Gupta, vice chairman of Bharti Enterprises, as an independent director to its board. Gupta joined fellow board members like cofounders Aadit Palicha and Kaivalya Vohra, alongside Avra founder Anu Hariharan and Nexus Venture Partners’ cofounder and managing director Suvir Sujan.

Zepto And Its IPO Play:

As it gears up for its IPO, Zepto seems to be undergoing a series of strategic changes and announcements aimed at its public listing prospects. 

Be it leadership restructuring or highlighting its growth trajectory or its progress toward profitability, and even a shift in domicile.

Recently, cofounder Kaivalya Vohra Paalicha revealed that Zepto’s newly launched dark stores are on track to achieve EBITDA breakeven. He also shared that the company is poised to surpass $4 Bn in annualised gross order value (GOV). 

Adding to the momentum, he said Zepto has managed to cut its operating cash flow (OCF) burn by 50%, all while recording meaningful growth over the past three months. Earlier thi syear, CEO Aadit Palicha publicly countered Zomato CEO Deepinder Goyal’s claims about quick commerce, asserting Zepto’s distinct approach and metrics.

Looking at the financial numbers for the year ending March 31 2024, Zepto’s operating revenue more than doubled to INR 4,454.52 Cr in FY24 from INR 2,025.70 Cr in the previous fiscal year. Moreover, its bottom line also marginally declined to INR 1,248.64 Cr in loss during the year under review from INR 1,271.84 Cr in FY23.

Zepto IPO play seems to be driven by both rapid growth in the sector as well as the public listing performances of its counterparts.

The quick commerce space has witnessed unprecedented growth in the last few years and is projected to reach a size of $9.95 Bn by 2029 growing at a CAGR of 16.60%.  Meanwhile, the enthusiasm received by Swiggy and the other 12 startups that went public last year also adds to the Zepto IPO zeal.