Zepto, a quick commerce company, is expected to double its initial goal by obtaining USD $300 million from local investors, according to sources. The company is stepping up its competition with rivals Zomato's Blinkit and Swiggy's recently launched Instamart, and this capital boost comes as a result.
Prominent investors oversubscribed the investment round, indicating significant trust in the industry. Ultra-HNIs and major Indian family offices will be among the investors. The funding complements Zepto's recent $1 billion fundraising campaign and establishes the business as a major force in the rapidly expanding fast commerce industry.
Increased Indian Ownership of Zepto
Following this funding, it is anticipated that Indian ownership of Zepto, including shares owned by its founders Aadit Palicha and Kaivalya Vohra, will increase to about 35%. According to sources, the founders received an extra 1% share in exchange for hitting important performance goals.
The fact that celebrities like cricket great Sachin Tendulkar and Bollywood star Amitabh Bachchan are participating in the investment round adds to the confidence surrounding Zepto's expansion. According to reports, prominent investors like Harsh Goenka's RPG group and Ravi Jaipuria's RJ Corp are also taking part, in addition to the Motilal Oswal group, which has raised its investment from $40 million to more than $60 million.
Investors Compete for Zepto Shares
According to someone with knowledge of the situation, Zepto increased the overall offering because the round was oversubscribed. "The business is selling roughly 6% of its stake for $5 billion." Mankind Pharma brothers Ramesh and Rajeev Juneja and Manipal Group head Ranjan Pai will also participate in this round, strengthening Zepto's support from a variety of domestic powerhouses.
Focus on Indian Investors and IPOs
Prior to initiating an initial public offering (IPO), Zepto's funding pitch emphasized its strategic goal: "We are doing this fundraise to start building Indian ownership in the company and deepen our relationships with high-quality domestic investors."
Zepto stands apart from its publicly traded rivals, Swiggy and Blinkit, as the sole major private participant in fast commerce, having achieved the milestone of one million orders each day. The company's decision to strengthen its Indian investor base is viewed as a crucial step in achieving its goals of going public (IPO).
