Economic Times7/2/2026Business1 min readIndia
Zepto's Legal Structure Raises Regulatory Questions Ahead of IPO
Quick Look
- Quick commerce firm Zepto's hybrid legal structure, combining wholesale and marketplace operations, is drawing regulatory scrutiny as it plans to go public.
- This differs from competitors like Blinkit and Swiggy's Instamart.
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Why It Matters
Zepto's unique business model combines wholesale operations with a marketplace, differing from competitors like Blinkit and Instamart. This structure is raising regulatory questions ahead of its planned IPO.
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Quick commerce firm Zepto's unusual legal structure is emerging as a regulatory question mark as it prepares to go public, according to industry executives, analysts and institutional investors.
Unlike Blinkit's inventory-led model or Swiggy-owned Instamart's marketplace structure, Zepto combines wholesale operations with a marketplace, recognising gross revenues from product sales alongside commissions, logistics, advertising and other fees.
The
Open Questions
- What specific regulations apply to Zepto's hybrid model?
- How will regulators address Zepto's revenue recognition?
- Will Zepto need to restructure before its IPO?
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This article was originally published by Economic Times.
