Zepto is said to be close to securing $100 million from Motilal Oswal, an asset management company, high-net-worth individuals (HNIs), and family offices. The quick commerce company aims to add more domestic investors to its roster.
Zepto raises $1 billion this year
According to Inc42, Zepto has been working on this investment round for several months. They are raising the funds at the same valuation as the two previous tranches announced earlier this year. In August, Zepto secured $340 million at a $5 billion valuation, after raising $665 million at a $3.6 billion valuation in June. Altogether, the online selling platform has raised over $1 billion this year and plans to expand into Tier 2 and Tier 3 markets, while strengthening its presence in key metros and Tier 1 cities.
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For now, Zepto started its services in Ahmedabad, Gujarat, and plans to expand to other cities like Vadodara, Surat, and Rajkot. This is part of their national growth plan, focusing on regions with strong digital infrastructure and high transaction volumes.
Zepto plans to release IPO soon
In June 2024, Aadit Palicha, CEO and co-founder of Zepto, stated, “We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business. If we are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon.”
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Meanwhile, the e-commerce platform is reportedly planning to launch Zepto Postpaid, entering the buy now, pay later (BNPL) market for large orders. They claimed their Gross Merchandise Value (GMV) for FY24 exceeded $1 billion, with about 75% of stores reaching full EBITDA positivity by May 2024. The company is also aiming for an IPO in the next few years and is relocating to India.
