In a significant development, quick-commerce startup Zepto has moved its headquarters to India, positioning itself for an imminent initial public offering (IPO). The move signifies a growing attraction of Indian startups towards the increasingly appealing local listings.
The company’s rapid transition from Singapore to India highlights an emerging trend of Indian startups relocating operations domestically. This relocation process was recently simplified by Indian authorities. Interestingly, Zepto’s change of domicile clocked the fastest shift by any startup in the country, per Zepto CFO Ramesh Bafna.
Historically, many Indian startups, such as PhonePe and Groww, initially chose foreign corporations primarily for the ease of foreign capital access. However, certain legislative constraints meant they had to reconsider the decision if a US listing was the target.
Now, a potent Indian IPO market demonstrates robust appeal for local startups, provoking a move towards domestic incorporation. The biggest bolt from the blue came through the massive $1.35 billion Swiggy IPO, marked as last year’s top global tech IPO.
Zepto, with its set IPO target for later this year, intends to raise nearly $1.1 billion. With a generous fundraising of more than $1.35 billion last year and a current valuation of $5 billion, Zepto is firmly on the IPO path.
Clearly, Zepto is going full steam ahead with its 10-minute urban delivery of groceries, wellness, and household products, wooing customers and menacing competitors like Zomato’s Blinkit for market leadership.
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