Zepto Eyes $100 Mn Infusion From Motilal Oswal, Family Offices

SUMMARY

A source close to Zepto told Inc42 that the new investment is part of a round that has been in the works for several months

In August this year, Zepto closed a $340 Mn financing round at a valuation of $5 Bn, and it raised $665 Mn at a valuation of $3.6 Bn in June

Zepto claimed its GMV for FY24 has surpassed $1 Bn, with approximately 75% of its stores achieving full EBITDA positivity as of May 2024

Zepto is reportedly in advanced discussions to raise $100 Mn from asset management company Motilal Oswal, as well as high-net-worth individuals (HNIs) and family offices, as the quick commerce giant looks to bring on more domestic investors to its cap table.

A source close to Zepto told Inc42 that the new investment is part of a round that has been in the works for several months. Zepto is said to be raising the funds at the same valuation as the two separate tranches announced this year already.

The story was first reported by Techcrunch.

In August this year, Zepto closed a $340 Mn financing round at a valuation of $5 Bn, and it raised $665 Mn at a valuation of $3.6 Bn in June. Overall, the company has raised more than $1 Bn this year alone and is preparing to expand into Tier 2 and Tier 3 markets, and deepen its presence in the key metros and Tier 1 cities.

For instance, the quick commerce startup launched its services in Gujarat’s Ahmedabad and plans to further branch out into other parts of the state, like Vadodara, Surat and Rajkot. This strategic expansion is a part of Zepto’s broader national growth plan, targeting high-potential regions with robust digital infrastructure and high transaction volume.

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.

“We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business. If we are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon,” Zepto cofounder and CEO Aadit Palicha said in June this year.