Zepto rebrands and restructures ahead of IPO launch

Zepto, the quick commerce startup, has officially changed its registered name from Kiranakart Technologies Private Limited to Zepto Private Limited, following in the footsteps of competitors Zomato and Swiggy. According to a report, the name change was approved by the  Registrar of Companies and aligns with Zepto’s strategic moves ahead of its planned IPO later this year. 

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The rebranding follows similar efforts by Zomato, which renamed its parent company to Eternal Limited, and Swiggy, which earlier changed its entity name from Bundl Technologies to Swiggy Private Limited. As part of its IPO preparations, Zepto recently appointed Akhil Gupta, vice chairman of Bharti enterprises, as an independent board member, joining cofounders Aadit Palicha and Kaivalya Vohra, among others. 

Zepto’s IPO strategy includes showcasing rapid growth and movement towards profitability. The company reported that its newly launched dark stores are close to achieving EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) breakeven, while its annualized Gross Order Value (GOV) is projected to exceed $4 billion. Operating cash flow (OCF) burn has also been reduced by 50% over the last three months. 

Financially, Zepto doubled its operating revenue to INR 4454.52 crore in FY24, though it posted a marginal drop in net losses compared to the previous fiscal year. With the quick commerce market expected to grow significantly and strong IPO trends among peers, Zepto’s public listing appears well-timed.