Zepto, which has made a splash in the world of quick commerce, has taken a big step before the IPO. To simplify its operations, the company has formed a new company named Zepto Marketplace Private Limited. This news has been confirmed to Business Standard by sources. According to media reports, this new unit was registered on 22 October 2024.
Zepto’s unique model
Zepto currently works on a B2B (business-to-business) model. It was started by Adit Palicha and Kaivalya Vohra. The company buys products directly from brands and then sells them to licensed firms such as Geddit Convenience, Drogheria Sellers, and Commodum Groceries. These firms deliver these products to customers on Zepto’s app.
Blinkit and Instamart’s approach is different
Compared to Zepto, its competitors Blinkit and Swiggy Instamart have taken a different approach. Blinkit’s model is such that intermediaries like Hands On Trade and 90 Minutes Retail take products from brands and sell them to B2B wholesalers. These wholesalers deliver the products to B2C sellers who sell directly to customers.
Swiggy Instamart also works similarly. Here B2B wholesalers deliver products to B2C sellers through dark stores.
Big preparations for IPO
Zepto has selected leading investment banks like Goldman Sachs, Morgan Stanley, and Axis Capital as advisors for its IPO in the second half of 2024. The company is planning to enter the stock market in the second half of 2025.
Zepto competes with Blinkit and Instamart
Zepto’s rivals, Blinkit (which is part of Zomato) and Instamart (which is part of Swiggy), have already been listed on the stock exchange. Now this step of Zepto shows that it also does not want to be left behind in this race.