Quick commerce platform Zepto is planning to raise around $100-150 million in another fundraise. The company is planning to raise the funds via domestic family offices and also wealthy individuals. The pre investment valuation for the same will be around $4.6 billion.
This is as per an Economic Times report. Motilal Oswal Financial Services’ chairman Raamdeo Agrawal might be investing around $14 million in personal capacity in the company. In the company’s last fundraise in late August, Agrawal also reportedly picked up stake in August. The quick commerce platform raised $340 million in the last funding round.
Post this the valuation of the company increased to $5 billion. New investors who joined the company includes General Catalyst, Mars Growth Capital and Epiq Capital. Other investors who participated in the round included StepStone, Lightspeed, DST Global, and Contrary.
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The reason the company raised the funds in August as per Zepto co-founder Aadit Palicha was to strengthen their balance sheet and bring onboard a new investor. Palicha said in a statement, “First, the opportunity to bring onboard a lead investor of Neeraj Arora’s calibre from General Catalyst was one we couldn’t pass on. Second, strengthening our balance sheet is a strategic move, particularly as the company continues to deliver robust growth and operating leverage.”
Billions in the Bank: Fundraise Hits $1.5 Billion in Just 4 Months
With regards to the latest fundraise, the company is decking up for its IPO that will happen next year. A source told the Economic Times, “This is in preparation to the IPO plans and getting a certain quality of investors onboard ahead of a pre-IPO round will help the company during a public offering.”
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Additionally, the company is reportedly focusing on the fundraise to strengthen their relationship with other domestic investors. What is interesting is in just around four months, the company’s fundraise has escalated to over $1.5 billion. This indicates the growing demand of the quick commerce space with key players such as Zomato, Swiggy and Big Basket also intensifying the competition.
Zomato is also planning to raise funds through a qualified institutions placement (QIP) on October 22. As per Investopedia, “A qualified institutional placement (QIP) is, at its core, a way for listed companies to raise capital without having to submit legal paperwork to market regulators.”
Since its stock market debut, this will be the first fundraise of the company. A report by CLSA says that the gross order value by quick commerce companies is supposed to reach $10 billion by FY26. CLSA further reportedly highlights, “Zomato's Blinkit, Zepto and Swiggy Instamart are the top-three players and hold more than 90 per cent of market share by revenue...” With the quick commerce space getting crowded, several other players such as Flipkart and Reliance are eyeing for expansion in this market.
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