Zepto gets green light from National Company Law Tribunal for reverse flip
Zepto has received approval from NCLT to shift its holding company to a Mumbai-based entity as it looks to streamline its ownership structure before its public debut.
Quick commerce unicorn Zepto has received the green light for its reverse flip to India from Singapore, as it gears for a public debut later this year.
According to an order from National Company Law Tribunal (NLCT), Mumbai-based KiranaKart Technologies can proceed with its decision to become the holding company of Zepto with no opposition to the cross-border amalgamation of the two entities, according to a report in The Economic Times.
The quick commerce operator was earlier a subsidiary of KiranaKart Pte Ltd in Singapore. It has also received approval from Singapore entities for its decision.
More importantly, Zepto will not need a no-objection certificate (NOC) from the central bank of India, according to the order, since no objections have been raised by the Reserve Bank of India.
Zepto had initiated its reverse flipping process from Singapore to India in October last year. A month later, it raised $350 million from family offices in India to rearrange its cap table with higher representation from domestic investors.
Reverse flipping refers to a corporate restructuring process wherein a company headquartered overseas moves its legal registration back to its home base. Apart from Zepto, Razorpay, Flipkart, Pine Labs and Meesho are looking to move their base to India.
After its aggressive fundraise spree last year, Zepto has been focusing on simplifying its corporate and organisational structure as it looks to file its IPO papers by March-April this year.
Edited by Swetha Kannan