Smartworks will design, build, operate and manage Zepto’s new office premises, which was earlier a shopping centre called ‘Total Mall’
Zepto held talks with platforms such as WeWork India, IndiQube and Awfis, before zeroing in on Smartworks for the deal
On the other hand, the deal to manage Zepto’s new facility will help IPO-bound Smartworks increase its managed workspace portfolio and shore up revenues
As part of shifting its base from Mumbai to Bengaluru, quick commerce unicorn Zepto has reportedly selected IPO-bound coworking startup Smartworks to manage its new head office in the startup hub.
Sources told Livemint that Zepto held talks with platforms such as WeWork India, IndiQube and Awfis, before zeroing in on Smartworks for the deal. As per the report, the coworking startup will design, build, operate and manage Zepto’s new office premises, which was earlier a shopping centre called ‘Total Mall’.
Smartworks will also reportedly manage a Zepto dark store (or a warehouse) on the ground floor of the building.
Zepto is reportedly looking to move into its new office by April. This follows reports in October last year that Zepto signed a lease agreement to convert Total Mall in Bengaluru’s Sarjapur into its office space “The management contract has a five-year tenure, including a two-year lock-in period,” a source said reportedly.
It is pertinent to note that Sarjapur Road is home to corporate giants such as Walmart, Adobe and Zepto’s rivals such Swiggy and Flipkart.
Flush with more than $1 Bn funding that it has raised in the past one year, Zepto reportedly plans to double its headcount this year from over 2,000 employees currently. Its new workspace can accommodate 3,500-4,000 seats.
On the other hand, the deal to manage Zepto’s new facility will help Smartworks increase its managed workspace portfolio and shore up revenues. This comes as the coworking startup is lining up plans to list on the bourses.
Smartworks received Securities and Exchange Board of India’s (SEBI) nod for an INR 550 Cr initial public offering (IPO) in December 2024. The public issue will comprise a fresh issue of shares worth INR 550 Cr and an offer for sale (OFS) component of 67.59 Lakh shares.
Zepto too has been gearing up for a potential public listing. In January this year, the quick commerce unicorn set up a new entity, which will potentially enable the company to pivot from its current B2B2C structure to a marketplace model.
Thereafter, reports surfaced that the quick commerce major was looking to file its draft red herring prospectus (DRHP) in March or April this year. The company is said to have already obtained the necessary permissions from Singaporean authorities to relocate its base to India ahead of the public listing.
The company is also said to have kicked off talks with domestic and global merchant bankers such as Morgan Stanley and Goldman Sachs for a potential listing on Indian bourses by August 2025. Zepto is reportedly looking to raise $450 Mn via a fresh issue of shares.
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