Zepto, a significant player in quick commerce, revealed on Friday that it had secured an astounding $350 million in its most recent round, led by Motilal Oswal's Private Wealth business, at a flat valuation of $5 billion. In anticipation of the company's impending initial public offering (IPO), the action attempts to attract more domestic investors to its cap table.
Leading financial institutions, family offices, and Indian high net worth individuals (HNIs) also contributed to the round, which is the biggest 100% domestic fundraising event in India's startup scene.
HNIs like Abhishek Amitabh Bachchan and Sachin Ramesh Tendulkar are among them, as are celebrities like Raamdeo Agarwal, the Taparia Family Office, Mankind Pharma Family Office, RP Sanjiv Goenka Group, Cello Family Office, Haldiram Snacks Family Office, Sekhsaria Family Office, Kalyan Family Office, Happy Forgings Family Office, Mothers Recipe Family Office (Desai Brothers), and others.
In less than 15 months, Zepto has secured nearly $1.6 billion in cash to bolster its balance sheet in anticipation of its anticipated public market debut next year. This occurs at a time when the rapidly growing quick commerce market is becoming more competitive.
Aadit Palicha, CEO and co-founder of Zepto, stated, "When we started this venture, the risk appetite among domestic investors was limited — especially to trust 18-year-olds with their money."
"We are honored to have arrived at a point in India's economic development where we have not only nurtured that trust but also led a fundraising effort of this size, which should serve as a model for future startups," he continued.
The company's cap table now includes a number of major foreign investors, including Glade Brook Capital, General Catalyst, Dragon Fund, StepStone, Lightspeed Ventures, and Nexus Venture Partners.
The only company solely focused on speedy commerce, Zepto faces competition from companies like Tata-owned Big Basket, Swiggy-owned Instamart, and Blinkit-owned Zomato.
"Motilal Oswal is a firm believer in the potential for free cash flow powerhouses in the future of digital enterprises, especially rapid commerce players like Zepto. This excitement is shared by Motilal Oswal Private Wealth's largest and most prestigious family office clients in India, who have taken part in this once-in-a-lifetime value-creation experience," stated Ashish Shanker, MD and CEO of Motilal Oswal Private Wealth.
The quick commerce major is aggressively expanding its operations in preparation for its initial public offering. The company has extended its offerings, such as Zepto Cafe, to major cities and plans to soon reach 700 dark stores.
