Zepto Moves HQ to India: Local Listings Drive Growth

Zepto Relocates Headquarters to India

Zepto, a quick-commerce company, has officially transferred its corporate domicile to India. This decision aligns with a broader trend of Indian startups repatriating their headquarters in anticipation of potential initial public offerings (IPOs) within the country.

Rapid Transition

According to Zepto’s CFO, Ramesh Bafna, this relocation represents the quickest headquarters shift to India ever undertaken by a startup in the nation. The streamlined process facilitated by recent changes in Indian regulations enabled this swift transition.

Regulatory Changes and Industry Trend

Recent modifications to Indian regulations have simplified the process for companies to re-establish their headquarters domestically. Other companies, such as Pine Labs, have also been undergoing similar transitions, though over a more extended timeframe.

Following a Growing Movement

Zepto’s decision mirrors actions taken by other significant Indian startups, notably PhonePe and Groww. Initially, many Indian startups established holding companies abroad to facilitate access to international investment.

Access to Global Markets

A key reason for initial overseas registration for some, including Flipkart, Eruditus, and Udaan, was to maintain the possibility of a listing on U.S. stock exchanges, an option unavailable to companies based in India.

Strong IPO Market Drives Relocations

The Indian IPO market has demonstrated considerable strength over the past two years. This robust performance has motivated numerous founders to move their official operations back to India. Swiggy’s $1.35 billion IPO in November represented the largest tech IPO globally for the year.

Zepto’s IPO Plans

Having secured over $1.35 billion in funding and currently possessing a valuation of $5 billion, Zepto intends to file for an IPO later this year. Sources indicate the company aims to raise up to $1.1 billion through this offering.

Competitive Landscape

The company specializes in the rapid delivery – within 10 minutes – of groceries, wellness items, and household necessities in urban centers. Zepto is rapidly gaining ground on Blinkit, which is owned by Zomato, and currently leads the market.