Funding News: Zepto Raises $100 Million, Hits $5B Valuation Pre-IPO

Startup: Zepto

Founder: Kaivalya Vohra and Aadit Palicha

About us: Zepto is on a mission to save customers time making every second count towards life’s real joys. The platform has revolutionized rapid commerce in India by leveraging cutting-edge technology and strategically optimized delivery hubs. Zepto offers an extensive range of over 45,000 products, including fresh groceries, electronics, beauty essentials, apparel, toys, and more, delivering across more than 50 cities within 10 minutes.

Founded Year: 2021

Office: India

Sector: Technology, Information and Internet

Funding Round: Secondary Share Sale

Investors: Motilal Oswal, Raamdeo Agrawal

Motilal Oswal and Raamdeo Agrawal, the founders of Motilal Oswal Financial Services, have made a large strategic investment in Zepto, the emerging quick commerce company. The two founders have invested $50 million each, for a total of $100 million, through a secondary share acquisition. This deal was done by purchasing shares from early foreign investors, such as Rocket Internet and Lachy Groom.

The transaction values Zepto at a whopping $5 billion, highlighting the robust investor belief in the startup's growth and potential in the future. The sale is especially significant as it marks a rising trend of heightening domestic ownership among Indian startups as they prepare for listings. With Zepto said to be weighing an initial public offering (IPO) in the near term, the transition from foreign to Indian investors is interpreted as a tactical step toward meeting regulatory needs and building credibility among local market constituents.

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In addition to the secondary investment, Motilal Oswal Financial Services will also be likely to spearhead a new $250 million primary funding round in Zepto. The new round is expected to be raised from the firm's high-net-worth individual (HNI) and institutional investors. The probable fundraising process can also see the involvement of other major domestic financial institutions like Edelweiss and Hero Fincorp, further strengthening domestic investor representation on Zepto's cap table.

Website: http://zeptonow.com