Family offices of Manipal Group’s Ranjan Pai, Mankind Pharma’s Ramesh and Rajeev Juneja, and Cipla are reportedly interested in joining food tech giant Zepto‘s funding round.
According to ET, this fundraise aims to boost domestic shareholding with “well-known and credible” investors.
Zepto aims to secure $150 million in October
In August, Zepto raised $340 million at a $5 billion valuation, and in June, it raised $665 million at a $3.6 billion valuation. In total, the company has raised over $1 billion this year and plans to expand into Tier II and III markets while strengthening its presence in major cities.
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By the end of this month, Zepto is looking to finalise a $150 million fundraising round. Several well-known family offices with e-commerce capabilities are in discussions to invest in the Silicon Valley-based company, which is backed by General Catalyst and Nexus Venture Partners. As per ET, Zepto will also shift its headquarters to Bengaluru on November 11.
“We are doing this fundraise to start building Indian ownership in the company and deepen our relationships with high quality domestic investors before we kick off an IPO process,” as per Zepto’s funding presentation, assessed by ET.
“This round aims to boost confidence among mutual fund investors for pre-IPO funding and strengthen government trust in the operating structure. The process to significantly increase Indian shareholding has already begun,” the source further said.
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Zepto to move in India, plans to enter BNPL sector
Meanwhile, the report noted that Zepto’s parent company, Kiranakart, has applied to the National Company Law Tribunal (NCLT) to move its holding company from Singapore to India. This is part of a plan to become majority Indian-owned within the next 12-18 months. The NCLT in Mumbai has already started hearings. This move comes as the quick commerce sector grows rapidly, drawing attention to the operational models and ownership structures of these firms, especially their dark stores or mini warehouses, which help enable 30-minute deliveries.
Moving Forward, Zepto plans to launch Zepto Postpaid, entering the buy now, pay later (BNPL) segment for large orders. Zepto reported its GMV for FY24 is over $1 billion, with around 75% of its stores achieving full EBITDA positivity by May 2024. The company aims for an IPO in the next few years and is moving its base to India.
