Zepto is currently in advanced discussions to secure $100 million in new investment, marking its third funding round in the past six months. The leading quick commerce startup based in Mumbai is looking to attract more local investors, according to sources familiar with the negotiations as reported by TechCrunch.
The startup, which offers quick delivery of grocery and office supplies in multiple Indian cities within 10 minutes, is raising this new investment from Indian family offices and high net worth individuals.
Motilal Oswal, the asset management company that previously invested $40 million in Zepto, is overseeing the process for the new funding round, with commitments for more than half of the allocation already secured. This new investment values Zepto at $5 billion post-money, the same valuation as its recent $340 million financing round in August. Zepto has raised over $1 billion in the past six months, all of which remains in its bank account.
Zepto is preparing to go public next year and aims to broaden its base of domestic investors with the current fundraising round. The startup has received support from investors such as Avra, Lightspeed, Nexus, StepStone Group, YC Continuity, Glade Brook, and Contrary.
While quick commerce is facing challenges in other parts of the world, it is gaining traction in India. Quick commerce startups in India are projected to surpass $6 billion in sales this year, signaling a positive trend for the industry.
In response to the rise of quick commerce, traditional e-commerce players in India like Flipkart, Myntra, and Nykaa are working to reduce their delivery times to meet consumer expectations.
Dmart, a major brick-and-mortar retailer in India, saw a dip in its stock value as it acknowledged losing business to quick commerce startups.
Analysts at Morgan Stanley noted the expansion of Quick Commerce players in categories, SKUs, and discount offerings to cater to convenience-seeking customers.
Zepto, competing with BlinkIt by Zomato, Instamart by Swiggy, and BigBasket by Tata, has significantly increased its annualized net run rate in recent months according to sources and internal documents.
Zepto’s co-founder and CEO Aadit Palicha shared projections with investors in August, predicting a 150% growth in the next 12 months.
