Quick commerce startup and unicorn Zepto has launched a new entity Zepto Marketplace Pvt. Ltd. Sources familiar with the matter said that the purpose of creating this unit by the company is to simplify its operations before the IPO. The company currently operates under the Business to Business (B2B) model. The company’s Indian arm Kirankart Technologies Pvt Ltd sources goods directly from brands and sells it exclusively to companies that manage the Zepto platform.
Zepto’s competitors – Blinkit and Swiggy Instamart have been operating as marketplace systems for a long time and sellers can list products directly for consumers. Now Zepto is also doing something similar. Zepto Marketplace Pvt Ltd was registered on 22 October 2024, ultimately signaling its exit from the B2B model. With this change, Zepto’s operation can also run on the lines of Blinkit and Swiggy Instamart. Actually, Zepto is preparing to launch IPO this year.
A source said, ‘Zepto’s current model is quite complex and it is possible that the company wants to make its business model more clear and transparent for all investors before its IPO. “Through the registration of a separate entity – Zepto Marketplace Private Limited, the company will transform its operations to ensure that its business model is similar to that of Blinkit and Swiggy Instamart.”
Once the uniform business model is implemented, it will help investors better evaluate Zepto’s operating metrics. However, another source said, ‘The purpose of registration of the new entity is to take the internet platform forward.’ This person said that the aim of the company is to keep a separate balance sheet for the tech business, so that it can help in dividing the business into different units. “The company is running an e-commerce platform with intellectual property and its business model will not change despite the new entity,” the source said.
Zepto did not respond to Moneycontrol’s questions.