Ranjan Pai, Cipla family eye stake in Zepto; startup moves NCLT to shift domicile

According to sources familiar with the matter, Zepto, a quick-commerce firm, is expected to welcome the family offices of Ranjan Pai from the Manipal group, as well as the Mankind Pharma brothers Ramesh Juneja and Rajeev Juneja, and Cipla to participate in its funding round. This move aims to strengthen Zepto’s local ownership with reputable and renowned stakeholders.

Zepto’s parent company, Kiranakart, has submitted a request to the National Company Law Tribunal (NCLT) to relocate its headquarters from Singapore to India. This strategic initiative aims to transform the company into a predominantly Indian-owned entity within the upcoming 12-18 months.

Amid the swift expansion of the quick-commerce industry, there is increasing scrutiny on the operational strategies and ownership frameworks of companies and their dark stores. These mini warehouses play a crucial role in ensuring deliveries within 30 minutes. The government engaged with ecommerce leaders regarding this matter, as reported by ET on September 17th.

The recent capital infusion of up to $150 million into Zepto, sourced from regional family offices and affluent individuals, as initially disclosed by ET.

Some prominent family offices with a background in ecommerce have been in discussions regarding potential investments in a company backed by General Catalyst and Nexus Venture Partners in Silicon Valley. The firm is scheduled to relocate its headquarters to Bengaluru on November 11, according to sources familiar with the matter.

Zepto’s funding presentation, as per ET’s review, states that the fundraise aims to initiate Indian ownership in the company and strengthen ties with top-notch local investors before commencing the IPO journey.

No comments were provided by Pai, while attempts to reach out to the family offices of Cipla and Mankind Pharma for their response on the issue remained unanswered until the press time on Monday.

A comment was also not provided by Zepto’s CEO, Aadit Palicha.

The primary drivers for this round are twofold: firstly, the participation of family offices and HNIs is poised to boost investor trust in mutual funds for pre-IPO funding, and secondly, it is expected to enhance the government’s confidence in the operational framework.

One of the individuals referenced earlier remarked, “The endeavor has commenced to substantially boost Indian ownership, although it is an ongoing process.

The majority of individuals who hold shares in Zepto are investors from overseas.

According to an individual familiar with the discussions regarding Zepto’s fundraising and well-versed in the sector’s developments, a significant Indian ownership stake holds a distinct advantage within influential government circles and among decision-makers. This advantage becomes particularly pronounced amidst escalating concerns regarding quick commerce’s repercussions on kirana stores and other retail establishments.

The shift from a marketplace model to an inventory model is becoming noticeable among quick commerce platforms, despite their initial claim to operate under the former. In India, foreign-funded online marketplaces are prohibited by foreign direct investment regulations from possessing inventory or exercising control over sellers on their platforms.