 "Zepto looks to raise $100 million, marking third funding round in 6 months")
Quick commerce startup Zepto is in advanced talks to raise $100 million in new investment, according to a report by TechCrunch. This will be the company’s third round of fundraising in just six months. Known for delivering groceries and office supplies within 10 minutes in various Indian cities, is securing the investment from domestic sources. This includes Indian family offices and high-net-worth individuals.
Asset management firm Motilal Oswal is overseeing the funding discussions. Motilal Oswal has previously invested $40 million in Zepto. The report suggests that Zepto has already garnered commitments for more than half of the total investment, though they remain anonymous as the matter is private.
Initially based in Singapore, Zepto shifted its headquarters to Mumbai to begin plans for public listing. Recent reports have suggested that quick commerce is planning another shift, this time to Bengaluru, India’s tech capital. This new round of funding is aimed at bolstering Zepto’s investor base with local players ahead of its initial public offering (IPO) in 2025.
Currently, Zepto’s key backers include Avra, Lightspeed, Nexus, StepStone Group, YC Continuity, Glade Brook, and Contrary.
The company is positioning itself to expand its market presence as it competes with other major players in India’s quick commerce sector, including Zomato-owned BlinkIt, Swiggy’s Instamart (backed by Prosus), and Tata’s BigBasket.
India’s growing e-commerce ecosystem
Globally, India has become the third largest startup ecosystem. The Department for Promotion of Industry and Internal Trade (DPIIT) has also reported an 11 per cent rise in incubators and accelerators, highlighting India’s growing influence on the global stage, as earlier reported by Business Standard.
More From This Section
A recent report from Global Data also revealed that Indian startups attracted $7.5 billion in venture capital funding between January and August 2024. This signals high investor confidence in the country’s thriving entrepreneurial environment. Furthermore, S&P Global Market Intelligence has forecasted India’s nominal gross domestic product (GDP) to surpass $7 trillion by financial year 2030-31 (FY31), making it the world’s third-largest economy by 2030. The country is seen by international experts as a ‘bright spot’ in the global economy, further boosting its startup ecosystem.
Zepto thrives amid unicorn slowdown
Zepto became India’s first unicorn in 2023, during a time that was considered a major slowdown for unicorns in the country. Its co-founders, Kaivalya Vohra and Aadit Palicha also became India’s youngest billionaires, with net worths of Rs 3,600 crore and Rs 4,300 crore, respectively, according to the 2024 Hurun Rich List. The company’s rapid growth has also secured its spot at the top of LinkedIn’s list of Indian startups for 2024.
With the upcoming festive season, India’s e-commerce market is expected to reach $12 billion in gross merchandise value (GMV) between October and December 2024, a significant 23 per cent increase from $9.7 billion during the same period last year, according to a recent report by logistics unicorn Shiprocket. Zepto is well-positioned to capitalise on this growth, as the demand for quick commerce continues to rise across the country.