Zepto gets nod for parent firm’s merger with Singapore arm

Kiranakart Technologies, which runs quick-commerce platform Zepto, has got the green signal from the National Company Law Tribunal (NCLT) to merge with its Singaporean affiliate Kiranakart Pte Ltd in what paves the way for the firm to accelerate its initial public offering (IPO) plan.

The NCLT’s approval comes after Singaporean authorities gave their nod for the merger, which is expected to simplify the e-commerce firm’s holding structure, which will help in future fundraising from domestic and foreign investors, according to the company’s counsels.

This NCLT approval, under regulation nine, allows a startup to become a fully Indian company without needing a no-objection certificate (NOC) from the Reserve Bank of India (RBI).

The tribunal has, however, said that the income-tax department retains the authority to explore tax implications from the transaction.

Zepto is looking to file draft share sale papers by April and has called a board meeting later this month, The Economic Times had reported.

Zepto is part of a growing trend of startups shifting their corporate structures back to India, joining companies like PhonePe, Pine Labs, and Meesho. This move aims to improve market access, comply with regulations, and prepare for IPOs.

The Indian government expects a ₹20,000 crore tax boost from these reverse flips, as startups realign domestically, increasing their tax obligations and positioning themselves for public listings.