Is Zepto IPO-Ready? Name Change Hints at a Blockbuster Public Debut!

As India's startup ecosystem matures, more homegrown companies are lining up to test the waters of public markets. Among the most anticipated entries is Zepto, the Gen Z-founded quick commerce company that has turned heads for its blistering growth and bold bets. And now, in what seems like another well-calculated move in its pre-IPO checklist, Zepto has taken a symbolic yet strategic step—it has renamed its registered entity from Kiranakart Technologies Private Limited to Zepto Private Limited.

While on the surface this may seem like a mere administrative change, in the high-stakes world of IPO-bound startups, such a move speaks volumes.

Zepto Parent Company Changes Name

The rebranding of a registered company name is not uncommon in the lead-up to a public listing. Zepto's decision follows a pattern seen among other IPO aspirants in India’s growing digital economy. Zomato, earlier this year, announced its plans to rename its parent entity to Eternal Limited. In a similar vein, Swiggy too rebranded its registered name from Bundl Technologies Private Limited to Swiggy Private Limited ahead of its public outing.

These name changes are more than cosmetic. They signal a streamlining of brand identity, crucial when stepping into the world of public shareholders, regulators, and analysts. It also underlines a company’s intent to present a sharper, clearer narrative to the investing public—one that aligns more closely with the brand that users and stakeholders interact with daily.

According to a media report, Zepto has already secured the regulatory nod for this change from the Registrar of Companies (RoC), setting the stage for the IPO expected to roll out later this year.

IPO-Bound Zepto: Sharpening Focus, Building Credibility

But the name change is just one chapter in Zepto’s IPO playbook. The Mumbai-based startup, which disrupted the grocery delivery segment with its ultra-fast 10-minute delivery promise, is putting all the pieces together—leadership, growth, profitability, and governance.

In one of its strongest boardroom moves to date, Zepto has appointed Akhil Gupta, vice chairman of Bharti Enterprises, as an independent director. Gupta brings decades of experience in corporate governance and strategic execution, and his addition to the board is being seen as a major boost to investor confidence.

He joins an influential team that already includes cofounders Aadit Palicha and Kaivalya Vohra, Anu Hariharan (founder of Avra), and Suvir Sujan, cofounder and managing director at Nexus Venture Partners, one of Zepto’s early backers.

Fast-Track to Profitability: Breaking Even on the Dark Store Model

Beyond the structural and leadership shifts, Zepto is also strengthening its financial story. Speaking recently, cofounder Kaivalya Vohra revealed that Zepto’s newly launched dark stores—critical to its operations—are on track to achieve EBITDA breakeven, a significant milestone for any startup, let alone one in the notoriously capital-intensive quick commerce sector.

That’s not all. Vohra also shared that Zepto is eyeing an annualised gross order value (GOV) exceeding $4 billion, underlining the brand's increasing dominance in the segment. Moreover, in just the last three months, Zepto has reportedly slashed its operating cash flow (OCF) burn by 50%, even as it continued to grow.

Zepto vs. Zomato: A New Rivalry in the Quick Commerce Space?

While the IPO buzz has drawn attention, Zepto has also been vocal about its distinct path in the quick commerce segment—at times even locking horns with industry veterans.

Earlier this year, Zepto CEO Aadit Palicha publicly responded to Zomato CEO Deepinder Goyal’s scepticism around the quick commerce business model. In a sharp rebuttal, Palicha highlighted Zepto’s operational strategy and metrics as fundamentally different, pointing to stronger fundamentals and unit economics.

This move was seen not only as a defence of Zepto’s model but also as an assertion of its confidence and market leadership in the space.

Explosive Growth: Zepto’s Numbers Speak Louder Than Words

According to financial disclosures for the fiscal year ending March 31, 2024, Zepto’s operating revenue more than doubled, rising to INR 4,454.52 Cr, up from INR 2,025.70 Cr in FY23. While the company is still in the red, it managed to reduce its loss marginally to INR 1,248.64 Cr, compared to INR 1,271.84 Cr in the previous year.

These numbers—combined with growth in user base, order volume, and expansion into new cities—paint the picture of a company that’s not just growing, but doing so with increasing efficiency and discipline.

Quick Commerce’s Meteoric Rise in India

Zepto's IPO ambitions are well-timed, riding a wave of momentum sweeping through India’s quick commerce industry. The sector, which includes players like Zepto, Blinkit, and Instamart, has witnessed explosive growth over the past few years. According to projections, the segment is set to touch $9.95 billion by 2029, expanding at a CAGR of 16.6%.

The enthusiasm from the market is equally palpable. Swiggy and other tech startups that went public in the last year have set the stage for IPO-bound unicorns, fueling optimism among institutional investors and retail buyers alike.

As the company readies its papers and fine-tunes its narrative, the renaming of its registered entity is both symbolic and strategic—a way of signaling that Zepto is stepping out from its startup shadows and preparing to enter the capital markets spotlight.

With improving financials, a bolstered board, a focused strategy, and a fast-growing market in its favor, Zepto seems ready for its public moment. But as with any IPO, the road ahead will be tested by investor sentiment, regulatory hurdles, and market dynamics.

What’s clear, though, is that Zepto is not slowing down—not in its 10-minute deliveries, nor in its IPO chase.