2024-11-12 11:18:52 :
Fast commerce startup Zepto is seeking to raise about $250 million from high-net-worth individuals and wealth management firms including Motilal Oswal, IIFL and InCred, valuing it at almost $5 billion, three people familiar with the matter said. Mint.
“Wealth is expected to conduct further markdown sales to its HNI clients,” one of the people said. Another person said the round is expected to close later this month. Motilal Oswal is handling the deal additionally, the person said.
If the deal goes through, it will be the third time the startup has raised funding in six months. Zepto, Motilal, IIFL and InCred did not immediately respond. Mint Request for comment.
The Mumbai-based startup, which is gearing up for a public market listing next year, entered the coveted unicorn club a year ago after raising $200 million at a $1.4 billion valuation.
Zepto will consider balancing its capabilities in the race for a planned IPO, one of the people said. It’s a common approach taken by several startups recently, as early-stage investors look to sell some stakes and return capital to limited partners amid a broader liquidity crunch.
In August this year, Zepto received US$340 million in a round of financing led by General Catalyst, with a valuation of US$5 billion. Other new investors including Dragon Fund and Epiq Capital participated in the round, while existing investors including StepStone, Lightspeed, DST and Contrary increased their stakes.
The deal was announced nearly two months after the company raised its largest fundraise of the year, when it announced a $665 million pre-IPO round at a $3.6 billion valuation. The company plans to use the funds to double the number of its dark stores, or warehouses, to 700 by March 2025.
CEO Aadit Palicha told Zepto that nearly 75% of its 350 stores are Ebitda positive (or operating profitably) Mint In a June interview, he added that the company has reduced the time it takes for dark stores to become profitable from nearly two years to six months. At the corporate level, Zepto is also almost EBITDA positive, he added. The startup also reinvests proceeds from its profitable stores back into the business.
In addition to its dark stores, Zepto also outlined plans to use the funds to expand Zepto Café, its fast-delivery snacks and meals service, challenging Zomato and Swiggy, two food delivery platforms that are making a big push Invest in its express commerce business. . It competes directly with Swiggy’s Instamart, Zomato’s Blinkit and Flipkart’s Minutes, while other larger conglomerates such as Tata, Reliance and Amazon are testing similar initiatives.
Over the past few months, the companies have fueled demand for instant delivery, expanded their dark store networks and expanded their product ranges. Blinkit, acquired by Zomato in June 2022, holds 40% of India’s fast commerce market. HSBC April global research report. Zepto’s share has steadily increased to 28% over the past two years at the expense of Swiggy Instamart. Swiggy is gearing up for a listing next week.
India’s hot rapid commerce sector currently has a market size of US$2.8 billion and is expected to maintain a growth rate of 40-45% in the next three years, benefiting from the huge potential for user growth, increasing urban population and disposable income, and greater demand for goods. . Convenient and fast shopping solutions, according to a report released by Redseer in March.
Founded in 2021 by Palicha and Kaivalya Vohra, Zepto was founded with the goal of delivering daily essentials online as COVID-19 curfews made running daily errands difficult and challenging.
Follow us On Social Media   Twitter/X
