Zepto eyes $100M in third fundraising effort in 6 months
What's the story
Quick commerce leader Zepto is seeking a further $100 million in funding, according to TechCrunch. This potential funding round would mark Zepto's third fundraising effort in just six months, underscoring the rapid growth and intense competition within the Indian quick commerce space. The Mumbai-based firm is looking to rope in more domestic investors for this round, particularly Indian family offices and high net worth individuals.
Funding facilitator
Motilal Oswal leads funding deliberation for Zepto
Motilal Oswal, a leading asset management firm that had previously invested $40 million in Zepto, is leading the new funding round. Reportedly, more than half of the allocation has already been committed. The new investment round will keep Zepto's post-money valuation at $5 billion, the same as its recent $340 million financing round in August. In the last six months, Zepto has raised over $1 billion, all of which is still in its bank.
Business expansion
Zepto's growth and market competition
Zepto, which competes with BlinkIt (owned by Zomato), Swiggy's Instamart, and Tata's BigBasket, has witnessed a remarkable growth in its annualized net run rate. In a meeting with investors in August, Zepto co-founder and CEO Aadit Palicha had projected that the start-up would grow at 150% over the next 12 months. The company is also eyeing an initial public offering (IPO) next year and hopes to add more Indian investors to its cap table before that.