Zepto – Launches Marketplace Model Amid Local Expansion

Expert Analysis:

• Quick commerce company Zepto has set up a new entity, Zepto Marketplace Pvt Ltd (registered on October 22, 2024), signalling a shift from its existing B2B2C structure to a marketplace model.

• Currently, Zepto operates through a hybrid structure, where its parent Kiranakart Technologies procures inventory and supplies it to partner entities (like Geddit Convenience), which handle retail sales and customer interaction.

• The transition to a marketplace model is driven by regulatory requirements around foreign direct investment (FDI), which restrict inventory ownership for foreign-funded e-commerce platforms, prompting structural realignment.

• The new model is expected to give Zepto greater control over sellers, inventory, and platform operations, while improving compliance and scalability as it expands locally.

• The move comes alongside Zepto’s rapid growth, including ~$1.4 billion funding in 2024, reflecting strong investor backing as it competes with Blinkit and Instamart in the quick commerce space.