Zepto to raise $500M at a whopping $7B valuation
What's the story
Zepto, the quick commerce start-up, is in the final stages of raising between $450 million and $500 million in primary capital. The funding round is led by existing investors General Catalyst and Avenir Growth. The new investment will value Zepto at a whopping $7 billion post-money, a solid 40% jump from last year's valuation of $5 billion.
Completion timeline
Ongoing funding round expected to be completed in a month
The ongoing funding round is expected to be completed in about a month's time. Apart from General Catalyst and Avenir Growth, other existing investors are also likely to participate in this round by investing capital on a pro-rata basis. The new funding will change Zepto's ownership structure, with Indian investors' stake potentially declining from 40% to around 35% as more foreign backers come on board.
Market dynamics
Zepto aims to have majority Indian ownership by IPO time
Zepto's latest fundraise comes as it faces stiff competition from top players such as Blinkit and Swiggy Instamart. In recent months, Indian investors have increased their stake in Zepto through secondary transactions worth over $100 million, resulting in approximately 40% of the company being owned by Indian investors. The company is optimistic about becoming a majority-owned Indian firm by the time of its IPO.