Zepto to raise $300 mn, doubling initial target amid quick commerce battle

Quick commerce startup Zepto is set to secure $300 million from domestic investors, doubling its initial target, reported The Economic Times citing sources. This funding boost comes as the company intensifies its competition with rivals Zomato’s Blinkit and recently listed Swiggy’s Instamart.

 

The funding round, oversubscribed by prominent investors, will include top Indian family offices and ultra-high net worth individuals (ultra-HNIs), signalling strong confidence in the sector. The financing follows Zepto’s recent $1 billion fundraising spree and positions the company as a formidable player in the booming quick commerce market.

 

Indian ownership in Zepto to surge

 

Post this round, Indian ownership in Zepto is expected to rise to approximately 35 per cent, including stakes held by its founders Aadit Palicha and Kaivalya Vohra. The founders have been granted an additional 1 per cent equity for meeting key performance targets, sources revealed.

 

 

Celebrities like Bollywood legend Amitabh Bachchan and cricket icon Sachin Tendulkar are joining the funding round, further highlighting optimism around Zepto’s growth. Notable investors such as the Ravi Jaipuria-led RJ Corp and Harsh Goenka’s RPG group are also reportedly participating, alongside the Motilal Oswal group, which has increased its commitment from $40 million to over $60 million.

 

Investors jostle for stake in Zepto

 

“The round was oversubscribed, prompting Zepto to increase the total offering,” said a person aware of the development. “The company is selling about 6 per cent stake at a $5 billion valuation.”

 

This round will also see investments from Manipal group chief Ranjan Pai and Mankind Pharma brothers Ramesh Juneja and Rajeev Juneja, solidifying Zepto’s backing from diverse domestic heavyweights.

 

Focus on IPO and Indian investors

 

Zepto’s funding pitch, reviewed earlier, highlighted its strategic intent: “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.”

 

With its milestone of 1 million daily orders, Zepto remains the only large private player in quick commerce, distinguishing itself from its publicly listed competitors, Swiggy and Blinkit. The company’s move to fortify its Indian investor base is seen as a critical step toward its initial public offering (IPO) ambitions.