Zepto changes parent entity's name ahead of IPO

Quick commerce unicorn Zepto has changed the name of its parent entity from Kiranakart Technologies Private Limited to Zepto Private Limited, according to regulatory filings.

The development was first reported by Moneycontrol.

Aligning the parent entity's name with the company's brand is seen as an effort to boost brand recall among consumers and stakeholders ahead of a public listing.

Sriharsha Majety-led Swiggy had also changed its registered name from Bundl Technologies to Swiggy Private Limited less than 10 months before filing its DRHP (draft red herring prospectus) with the markets regulator. Later, it dropped 'private' from its name and converted to a public company.

Mumbai-headquartered Zepto has undertaken a series of measures as it gears for a public listing. In January this year, it streamlined its business operations and set up a new entity, Zepto Marketplace Private Limited, to transform itself into a marketplace model like its peers.

Aadit Palicha-led Zepto also moved its domicile from Singapore to India in January. This relocation, commonly known as a reverse flip, allows the company to establish its headquarters in India.

According to media reports, Zepto has chosen Goldman Sachs and Morgan Stanley as the lead bankers for its public offering.

Zepto claims it will be within "touching distance" of EBITDA and breakeven in a few months. The platform is nearing $4 billion in annualised gross order value, marking a four-fold increase since last year and a 30% rise since January. The company also says it has reduced its EBITDA (loss) and operating cash flow burn by 50% over the last three months.

These developments come at a time when there is stiff competition in the quick commerce sector among players including Blinkit, Swiggy Instamart, Big Basket, Flipakrt Minutes and Amazon Now.