Zepto Secures Approval for Reverse Flip to India
Quick commerce unicorn Zepto has successfully obtained the necessary approval to transition its operations from Singapore back to India, positioning itself for a potential public offering later this year. According to a ruling from the National Company Law Tribunal (NCLT), Mumbai-based KiranaKart Technologies is authorised to become the holding company of Zepto, with no opposition being raised regarding the cross-border merger of the entities, as reported by The Economic Times.
Previously, Zepto functioned as a subsidiary of KiranaKart Pte Ltd in Singapore and has also secured consent from relevant Singaporean bodies for this transition. Significantly, Zepto will not require a no-objection certificate (NOC) from the Reserve Bank of India due to the absence of objections from the central bank, according to the tribunal’s order.
Background on Zepto’s Transition
Zepto initiated its process of reverse flipping from Singapore to India in October of the previous year. Within a month, the company successfully raised $350 million from family offices in India, aiming to reorganise its capital structure to increase the representation of domestic investors.
Reverse flipping is a corporate restructuring process in which a company based overseas relocates its legal status back to its original country. Other notable firms also considering a move to India include:
- Razorpay
- Flipkart
- Pine Labs
- Meesho
Following an intensive fundraising drive last year, Zepto is now concentrating on streamlining its corporate and operational framework, as it prepares to submit its initial public offering (IPO) documentation by March-April of this year.