Ranjan Pai, Cipla Family In Fray For Zepto Stake

Family offices of Manipal Group’s Ranjan Pai, Mankind Pharma’s Ramesh and Rajeev Juneja and Cipla are reportedly looking to join quick commerce major Zepto’s funding round.

As per ET, with this fundraise, the company is seeking to shore up domestic shareholding with “well-known and credible” names.

In August, Zepto closed a $340 Mn financing round at a valuation of $5 Bn, while in June, it raised $665 Mn at a valuation of $3.6 Bn. Overall, the company has raised more than $1 Bn this year alone and is preparing to expand into Tier II and III markets and deepen its presence in the key metros and Tier I cities.

Zepto’s latest fundraise of up to $150 Mn is expected to close by the end of this month. Several prominent family offices with expertise in ecommerce have been in discussions to invest in the Silicon Valley-backed firm, supported by General Catalyst and Nexus Venture Partners. Zepto is also set to relocate its base to Bengaluru on November 11, as per ET.

“We are doing this fundraise to start building Indian ownership in the company and deepen our relationships with high quality domestic investors before we kick off an IPO process,” as per Zepto’s funding presentation, reviewed by ET.

“This round aims to boost confidence among mutual fund investors for pre-IPO funding and strengthen government trust in the operating structure. The process to significantly increase Indian shareholding has already begun,” the source added.

The report further said that Zepto’s parent Kiranakart has also filed an application with the National Company Law Tribunal (NCLT) to shift its holding company from Singapore to India as part of a plan to become majority Indian-owned within the next 12-18 months. The NCLT in Mumbai has already begun hearings on the matter. 

This move comes as the quick commerce sector’s rapid growth draws attention to the operational models and ownership structures of these firms, particularly their dark stores or mini warehouses, which play a key role in enabling deliveries within 30 minutes.

The company is also said to be planning to launch Zepto Postpaid, marking its foray in the buy now, pay later (BNPL) segment for large order sizes.

Zepto claimed its GMV for FY24 has surpassed $1 Bn, with approximately 75% of its stores achieving full EBITDA positivity as of May 2024. The company is eyeing an IPO in the next couple of years, and is in the process of redomiciling to India.