Zepto sets up new marketplace entity ahead of its $500 million IPO: Report

Quick commerce major Zepto has established a new entity called Zepto Marketplace Private Limited in order to streamline its operations ahead of its upcoming initial public offering (IPO), Moneycontrol reported today citing people privy to the developments.

Zepto currently runs on a business-to-business (B2B) model through its Indian arm Kiranakart Technologies Pvt Ltd. It sells products sourced directly from brands to a fixed set of companies (Geddit Convenience, Drogheria Sellers and Commodum Groceries) which manage the Zepto platform under a licensing agreement and sell these products to consumers.

Put simply, the three companies buy their stock from Zepto’s Kiranakart Technologies and sell them to end consumers on the Zepto application. This makes Kiranakart Technologies a B2B company. The three companies pay a licensing fee to Aadit Palicha and Kaivalya Vohra’s owned Zepto for every sale.

Zepto’s main rivals Swiggy and Blinkit, on the other hand, operate through the marketplace approach which allows various sellers to directly sell their products to the customers.

As per media reports, Blinkit operates with a structure where companies like Hands On Trade, 90Minutes Retail and many others source products directly from brands. These goods are then sold to B2B wholesalers, who further sell them to various B2C sellers listed on Blinkit.

Swiggy also has a similar structure in which companies act as B2B wholesalers and supply goods to dark store operators. These operators then sell these products to B2C sellers on the platform.

Zepto Marketplace Private Limited, which was reportedly registered on October 22, 2024, is one of the many moves made by IPO-bound Zepto, including the launch of its standalone food delivery application. The company is expanding its operations to many parts of India and is expected to launch its $500 million IPO in the second half of 2025.