10-min delivery giant Zepto sets up new marketplace entity ahead of IPO, says Report

Mumbai-based quick commerce giant Zepto has formed a new entity called Zepto Marketplace Private Limited as it prepares for a $500 million initial public offering (IPO), expected in the second half of 2025, according to media reports.

Multiple media reports indicate that the new entity was registered on Oct. 22, 2024, and will help Zepto streamline its operations as it shifts closer to a marketplace-based model.

What's the current model?

Zepto, founded by Aadit Palicha and Kaivalya Vohra, currently runs on a business-to-business structure through Kiranakart Technologies Pvt. Ltd. Under this setup, Kiranakart sources products directly from brands and sells them to a select group of licensed firms, including Geddit Convenience, Drogheria Sellers and Commodum Groceries.

These companies, in turn, list and sell the items on the Zepto platform to end consumers. Each of these licensee firms pays a fee to Zepto for every sale completed on the app. This structure stands in contrast to marketplace models used by competitors, such as Blinkit and Swiggy Instamart, where various sellers directly offer goods to consumers.

Blinkit’s approach involves intermediaries like Hands On Trade and 90Minutes Retail, which source products and distribute them to wholesale providers. Those wholesalers supply the items to business-to-consumer sellers that appear on the Blinkit platform.

Swiggy Instamart employs a similar framework, with B2B wholesalers providing products to dark store operators, who then make them available to B2C sellers.

Zepto’s move to create a marketplace arm suggests a pivot toward the systems used by its rivals, potentially easing the transition for sellers and enabling a more diverse selection for shoppers.

Zepto's IPO plans

Before setting up Zepto Marketplace Private Limited, the company selected Goldman Sachs, Morgan Stanley and Axis Capital as advisors for its upcoming IPO. The business, which has expanded its reach across multiple cities, is also exploring new services, including a standalone food delivery offering.

By refining its corporate structure and embracing a marketplace approach, Zepto aims to solidify its position as a leading player in India’s quick commerce market, where it already holds a significant share.