Quick commerce major Zepto has raised $350 million (approximately INR 2,950 crore) in a funding round led by Motilal Oswal‘s private wealth division.
Domestic Investors, HNIs invest into Zepto
The round saw participation from domestic high-net-worth individuals, family offices, and financial institutions, including Taparia Family Office, Mankind Pharma Family Office, and RP Sanjiv Goenka Group.
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Celebrities Abhishek Bachchan and Sachin Tendulkar also invested in the round. Zepto stated that the round was raised entirely from domestic investors. The company plans to use the funds to expand its 10-minute snacks delivery service, dark store network, and fintech offerings.
Meanwhile, Zepto cofounder and CEO Aadit Palicha said, “When we started this venture, the risk appetite among domestic investors was limited – especially to trust 18-year-olds with their money. Today, we are humbled to have reached a place in India’s economic growth where we’ve not only fostered that trust but also spearheaded a fundraise of this magnitude, which will hopefully set a precedent for the startups that follow ….”
Zepto nets $665 million in June
This funding round comes after Zepto raised $665 million in June at a valuation of $3.6 billion and another $340 million in August at a valuation of $5 billion. The company has raised over $1.3 billion in the past few months.
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Further, the funding round also highlights the growing competition in India’s quick commerce space. Swiggy has allocated a significant portion of its IPO proceeds to fuel its quick commerce vertical, while Zomato-owned Blinkit has rapidly scaled up its operations and product catalogue.
Established in July 2021 by Palicha and Kaivalya Vohra, Zepto claims to deliver groceries and other items within 10 minutes. The company operates in 17 cities, has over 550 dark stores, and processes more than 7 lakh orders daily. Zepto is also eyeing an initial public offering (IPO) in the next couple of years and is in the process of shifting its base to India.
