StartupTalky

Tag: National company law tribunal

  • The NCLT Approves Zepto’s Reverse Flip into India

    The merger of Mumbai-based Kiranakart Technologies, the company behind the fast commerce platform Zepto, with its Singapore-based affiliate, Kiranakart Pte Ltd, has been accepted by the National Company Law Tribunal (NCLT). Zepto becomes an Indian firm after the NCLT order, and there is no resistance to the two companies’ cross-border merger. Zepto is operated by Kiranakart Technologies Private Limited, an Indian firm, and Kiranakart PTE LTD, a Singaporean holding company. According to the NCLT ruling, Zepto will not need a no-objection certificate (NOC) from the Reserve Bank of India (RBI). According to the tribunal, the RBI has not objected, and an express NOC is not required because the Scheme of Arrangement is covered by Regulation 9 of the Cross Border Merger Regulations, which stipulates that the RBI’s prior permission is presumed. According to the ruling, the scheme will also help the companies deal with better management, value consolidation, risk and policy management, competitive regulatory environments, and shareholder value creation.

    Zepto Aims to Streamline its Group’s Structure with this Move

    Zepto intends to simplify its group structure by lowering the number of legal entities in order to “optimise the legal entity structure” for improved business synergies, speedier decision-making, and substantial cost savings with the move of its holding company to Mumbai, India. This streamlined framework will help future fundraising efforts from Indian and international investors, according to the NCLT Mumbai bench. The judgement further stated that by switching to India, Zepto will be able to control risks, comply with local regulations, and directly align with the regulatory environment. By removing unnecessary administrative tasks and numerous record-keeping procedures, this action also seeks to streamline operations and drastically cut down on common management, administrative, and other costs. Zepto’s preparations for an IPO in India later this year are anticipated to be accelerated by this development.

    Within 30 days, Zepto is anticipated to formally finalise the transfer of its domicile to India. According to an earlier report by Inc42, Zepto, which is financed by Nexus, intends to reverse flip to India. According to people close to the business, Zepto wants to get into the reverse flipping queue with companies like Groww, Razorpay, Pine Labs, and Eruditus. However, many of these unicorns are being cautious and planning the most effective reverse flipping structure, much like PhonePe, whose tax liabilities went up to $900 million. The Mumbai bench of the NCLT noted in its January 9 ruling that the plan seems reasonable and fair and does not violate any legal provisions or public policy. Singaporean officials have also approved the merger.

    Zepto Aiming for an IPO

    In March or April of this year, the fast commerce platform hopes to submit its initial public offering (IPO) draft documents. Prior to going public, the company had already secured the required permits to move its headquarters from Singapore to India. Aadit Palicha and Kaivalya Vohra founded Zepto in 2021, and it presently uses a business-to-business (B2B) business model. Its parent company, Kiranakart Technologies, buys products straight from manufacturers and only distributes them to its licensee businesses, which include Commodum Groceries, Geddit Convenience, and Drogheria Sellers. Last year, Zepto made headlines when it raised an incredible $1.3 billion in capital and surpassed Blinkit and Swiggy Instamart in terms of revenue. At the moment, the rapid commerce unicorn is worth about $1.4 billion.

    Zaggle Partners with Zepto to Deliver SaaS Solutions
    Zaggle inks an agreement to provide Zepto with SaaS solutions, enabling enhanced operational efficiency and technological innovation.
    StartupTalkyNitin Konde

  • NCLT Gives Clearance to Merger Between Slice and North East Small Finance Bank

    Slice, a unicorn in the financial technology industry, has been granted permission by the National Company Law Tribunal (NCLT) to merge with North East Small Finance Bank (NESFB).

    Both businesses made the announcement that they would be merging in October of 2023. In March of the previous year, Slice paid around $3.42 million to purchase a five percent ownership in a bank with its headquarters in Guwahati.

    How Merger Will Help Both the Entities?

    In a news release, Slice noted that the merger will make it possible for the merged business to make use of cutting-edge technology and profound community awareness, which will ultimately lead to increased financial inclusion across the country.

    Customers may anticipate an increased selection of products, improved omnichannel offers, and a banking experience that is more streamlined.

    The scheme of arrangement and amalgamation that involves Garagepreneurs Internet Private Limited, Quadrillion Finance Private Limited, Intergalactory Foundry Private Limited, RGVN (North East) Microfinance Limited, and North East Small Finance Bank Limited has been approved by the National Company Law Tribunal (NCLT).

    The Competition Commission of India (CCI) and the Registrar of Companies (RoC) have both given their thumbs up to Slice and NESFB respective applications.

    In addition, the Reserve Bank of India (RBI) and the Income Tax Department also issued certificates stating that they did not have any objections to the transaction.

    Slice’s Financial Report Card

    Shortly after the conclusion of Slice’s debt round of thirty million dollars, this new development has taken place. The most recent valuation of Slice was above $1.5 billion, which occurred at the Series C round in November 2021. To date, Slice has raised a total of $340 million.

    According to the data intelligence platform TheKredible, Rajan Bajaj, who held the position of CEO and co-founder of the company, owned 8.21% of the ownership.

    While Slice’s losses increased by 59.8% to a total of INR 406 crore, the company’s revenue increased by a factor of three, reaching INR 843 crore in the fiscal year 2023.

    The Bengaluru-based company was able to scale during the fiscal year 23, despite the disruption it experienced as a result of the Reserve Bank of India’s change in rules for card issuers. It has not yet submitted its annual financial reports for the fiscal year 2024.

    About Slice Card

    Slice is a digital lending platform that, in partnership with non-bank financial companies (NBFCs), provides a credit card. The Slice card is intended for individuals who are new to the concept of credit, as well as students and young professionals who have their finances limited.

    There is no requirement for a credit score, and the eligibility requirements are more lenient. There is also no annual charge or membership cost associated with the card.

    Fintech Takeaways from Slice-North East Small Finance Bank Merger
    In this article, we explore how fintech companies can lay the foundation and prepare for a probable merger-like scenario with a bank in the future.
    StartupTalkyPrithvi Durai