VIP Clothing stock surges over 11% on Zepto partnership for quick commerce push

Team Finance Saathi

    11/Apr/2025

What's covered under the Article:

  1. VIP Clothing partners with Zepto to expand innerwear delivery via quick commerce in top cities.

  2. Stock surged over 11% intraday post announcement, after earlier tie-up with Swiggy Instamart.

  3. Partnership aligns with Zepto’s rapid growth and its reported IPO plan targeting $1 billion.

VIP Clothing Ltd., one of India’s most recognised innerwear brands, made headlines on April 11 after announcing a partnership with Zepto, India’s fast-growing quick commerce platform. The announcement not only generated investor optimism but also resulted in the company's stock price surging over 11% intraday. This partnership signals a focused push towards digitally driven retail and aims to bring innerwear essentials to customers’ doorsteps in minutes.

Partnership to Drive Rapid Urban Accessibility

The partnership marks VIP Clothing’s entry into India’s booming quick commerce segment, a sector defined by ultra-fast delivery of everyday essentials within minutes. Under the collaboration, VIP’s key brands—Frenchie, Feelings, and VIP—will be available on Zepto for instant doorstep delivery across major metropolitan areas including Mumbai, Delhi NCR, Bengaluru, and Chennai.

According to Sunil J Pathare, Chairman & Managing Director of VIP Clothing Ltd., the collaboration is aligned with the company’s vision of making premium quality innerwear more accessible to modern consumers. He remarked,

“This collaboration aligns perfectly with our vision of making high-quality innerwear easily accessible—whenever and wherever our customers need it.”

This move follows a similar retail strategy executed earlier with Swiggy Instamart, reinforcing VIP Clothing’s aggressive digital expansion plan. The brand is rapidly adapting to changing consumer behaviour, particularly the demand for convenience and instant gratification.

Zepto’s Role and Market Impact

Zepto, a leading player in India’s quick commerce ecosystem, has welcomed VIP Clothing as a significant addition to its product portfolio. Devendra Meel, Chief Business Officer at Zepto, stated:

“With VIP’s premium innerwear now available on Zepto, we are confident that users will enjoy the ease of shopping for their favourite products with just a few clicks.”

The partnership not only strengthens Zepto’s offerings but also reinforces the platform's commitment to diversifying its catalogue beyond groceries and household items. It marks VIP’s foray into non-traditional retail formats, and the timing couldn’t be more strategic.

Stock Performance Post Announcement

Following the announcement, VIP Clothing shares surged more than 11% intraday, reflecting strong investor confidence in the company’s forward-thinking approach. The stock momentum was also fuelled by anticipation that the partnership could unlock new revenue streams and broaden customer reach, especially among urban, digitally-savvy consumers.

This marks a notable positive shift in sentiment for the company, which has been undergoing a retail transformation strategy through digital and omnichannel initiatives.

Strategic Timing Amid Zepto’s IPO Buzz

This collaboration comes at a time when Zepto is reportedly preparing for an IPO, targeting to raise between $800 million and $1 billion. The buzz around Zepto’s public listing has already attracted significant market attention, and a successful IPO would further boost the visibility of its partnered brands, including VIP Clothing.

For VIP, being featured prominently on Zepto could translate into increased exposure, higher sales, and association with one of the fastest-growing retail formats in the country.

Digital-First Approach Driving Growth

The tie-up reflects a wider industry trend where traditional clothing brands are making strategic shifts to leverage digital platforms and adapt to the quick-commerce revolution. VIP Clothing’s pivot signals a clear understanding of the importance of instant availability, especially among younger demographics.

By collaborating with multiple delivery-first platforms, VIP aims to position itself not only as a legacy innerwear brand but also as a tech-forward, convenience-first brand in the minds of modern Indian consumers.

Aligning With Consumer Behavioural Shifts

Urban Indian shoppers today are demanding speed, convenience, and quality, and this is exactly what VIP is aiming to deliver through its partnership with Zepto. The availability of its core products on a 10-minute delivery app helps fulfil a latent demand: quick access to apparel essentials without visiting a store or waiting for days for delivery.

This change in distribution channel could also lead to valuable consumer data insights, helping VIP to optimise inventory, forecast demand better, and tailor marketing campaigns more effectively.

Investor Takeaways and Future Outlook

Investors looking at VIP Clothing should consider a few important signals from this development:

  • Market diversification: The brand is no longer relying solely on traditional offline sales but is expanding into new-age retail models.

  • Consumer connect: VIP is positioning itself as a lifestyle essential brand, available whenever and wherever needed.

  • Stock performance: The immediate market reaction suggests that investors see long-term potential in the company’s strategic partnerships and omnichannel ambitions.

If this strategy proves successful, it could act as a blueprint for other legacy brands looking to stay relevant in India’s digitally disrupted consumer economy.


Conclusion

VIP Clothing’s collaboration with Zepto represents more than just a retail tie-up—it’s a strategic evolution that reflects the brand’s ambition to stay ahead of the curve. With the stock reacting positively and consumer accessibility increasing, the company has managed to capture investor and customer attention alike. Coupled with Zepto’s IPO momentum, this partnership could very well be the start of a new growth chapter for VIP Clothing in India’s fast-paced quick-commerce world.

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