Quick commerce startup Zepto has completed its shift of domicile from Singapore to India, marking a significant milestone in the company's journey towards an initial public offering (IPO). This move makes Zepto the fastest to make the transition from a foreign headquarters to India, according to its chief financial officer Ramesh Bafna.

The Indian authorities have recently made it easier and faster for companies to flip their headquarters back to the home nation, paving the way for startups like Zepto to make the switch. This trend is not unique to Zepto, as other prominent Indian startups, including PhonePe and Groww, have also relocated their headquarters back to India in recent years.

The move is largely driven by the growing appeal of the Indian public market, which has emerged as one of the world's strongest in the past two years. Many Indian founders are now opting to shift their registered base back to the country, taking advantage of the favorable market conditions. Swiggy's $1.35 billion listing in November, the largest IPO for a tech startup globally last year, is a testament to the Indian market's strength.

Zepto, which raised more than $1.35 billion last year and is currently valued at $5 billion, plans to file for an IPO later this year, seeking to raise as much as $1.1 billion, according to a source familiar with the talks. The startup, which delivers groceries to customers in urban Indian cities in just 10 minutes, is increasingly narrowing the lead Zomato-owned Blinkit commands in the market.

Many Indian startups, including Flipkart, Eruditus, and Udaan, had originally set up holding companies overseas to access foreign capital more easily. Registering in Singapore, in particular, allowed them to keep open the option of a U.S. listing, which is not permitted for India-headquartered companies. However, with the Indian market's growth, these startups are now reversing their decisions and shifting back to India.

The domicile shift is a significant development for Zepto, which is poised to become one of the largest IPOs in the Indian tech space. The company's decision to move back to India is likely to pave the way for other startups to follow suit, further solidifying India's position as a hub for tech innovation and entrepreneurship.

As the Indian startup ecosystem continues to mature, it will be interesting to see how this trend of startups shifting back to India unfolds. With the country's public market showing no signs of slowing down, it's likely that we'll see more startups making the move in the coming months.