Indian quick commerce startup Zepto is set to raise $300 million from domestic investors, doubling its initial target, as per sources close to the matter.
Zepto secures $1 bn earlier
This funding round comes after the company secured $1 billion in the past few months, amidst intense competition in the quick commerce market with rivals Zomato‘s Blinkit and Swiggy‘s Instamart.
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According to ET, top Indian family offices and ultra-high net worth individuals (HNIs) will participate in the financing. Notable investors include the family offices of Ravi Jaipuria of RJ Corp and Harsh Goenka of RPG group, as well as the Motilal Oswal group, which has increased its investment from $40 million to over $60 million. Manipal group chief Ranjan Pai and Mankind Pharma brothers Ramesh Juneja and Rajeev Juneja are also investing in this round.
Bollywood star Amitabh Bachchan and former cricketer Sachin Tendulkar are also investing, showing strong confidence in the sector.
Indian shareholdings in Zepto at 35%
However, the quick commerce platform’s latest funding will increase Indian shareholding in the company to around 35%, including stakes held by founders Aadit Palicha and Kaivalya Vohra. The founders have been granted an additional 1% stock based on meeting performance goals. The company will sell about 6% stake at a valuation of $5 billion.
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“The round was oversubscribed, which is why they (Zepto) have increased the total offering. They will sell about 6% stake at the $5 billion valuation,” a source close to the matter revealed.
“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,” Zepto’s funding presentation.
Meanwhile, Zepto has achieved a significant milestone, surpassing 1 million daily orders. As a private player, it stands out in the market dominated by listed companies Swiggy’s Instamart and Zomato’s Blinkit.
