The decision of Zepto to establish a new entity named Zepto Marketplace Private Limited is a notable shift in its operating strategy. The move involves transitioning from B2B2C structure to a marketplace model and simultaneously highlights its ambition to adapt to regulatory challenges as well as strengthen its position in the quick commerce sector.
Zepto relied on licensing its brand and platform to third-party companies that handled consumer sales under its previous structure. Its parent company Kiranakart Technologies supplied inventory as a B2B entity. Zepto now has the flexibility to take greater control of inventory and seller relationships by creating a marketplace entity. The change aligns with India’s foreign direct investment rules but simultaneously also positions the company to build a more cohesive as well as scalable business model.
Zepto was founded by Aadit Palicha and Kaivalya Vohra. It has quickly emerged as a leading player in quick commerce and competed with names like Blinkit and Instamart. Ability of the startup to secure $350 million in funding last November led by Indian investors witnessed growing confidence in its vision. The push to become a majority Indian-owned entity is a strategic move. It is for compliance as well as to strengthen trust among stakeholders.
The growth story of Zepto is impressive and it has not come without challenges. Its aggressive expansion and especially its network of dark stores has resulted in a significant cash burn of more than $35 million monthly.
The broader ambitions of Zepto include plans for an IPO and shift its domicile from Singapore to India. All these reflects its commitment to rooting itself in the Indian market.
