Zepto scoops up $350 million more in funding; domestic holding now above 30%

Quick commerce firm Zepto has raised an additional $350 million in funding from Indian high net-worth individuals (HNIs), family offices, and leading financial institutions. The fundraise was led by Motilal Oswal’s private wealth division, the company said in a statement.

This adds to the $1 billion war chest Zepto has amassed over the past few months to take on rivals like Zomato’s Blinkit, Swiggy Instamart and others.

ET first reported in October about Zepto looking to onboard local investors with a mandate of raising $150 million. Subsequently, we reported on November 15 that the round had doubled in size as the quick commerce firm sought to boost local shareholding and investor interest in the sector was at a peak.

Also Read: We’re 100% compliant with FDI regulations; aim to be majority India-owned: Zepto’s Aadit Palicha

Raamdeo Agarwal of the Motilal group, Ranjan Pai of the Manipal group, the Mankind Pharma family office, Cello family office, Haldiram Snacks family office, Sekhsaria family office, and celebrities like Amitabh Bachchan and Sachin Tendulkar through their family office have also invested in the round.

“When we started this venture, the risk appetite among domestic investors was limited—especially to trust 18-year-olds with their money. Today, we are humbled to have reached a place in India’s economic growth where we’ve not only fostered that trust but also spearheaded a fundraise of this magnitude, which will hopefully set a precedent for the startups that follow,” Aadit Palicha, CEO, Zepto, said in a statement.

Ashish Shanker, MD & CEO, Motilal Oswal Private Wealth, said they are a strong believer in the future of digital businesses, particularly quick commerce players like Zepto, as potential free cash flow powerhouses.

Also Read: Zomato leads food delivery with 58% market share in Q1, Blinkit tops quick commerce: Motilal Oswal

“India’s biggest and marquee family office clients of Motilal Oswal Private Wealth share this excitement and have participated in this once-in-a-lifetime journey of value creation,” Shanker said.

General Catalyst, Nexus Venture Partners, Glade Brook Capital, and Lightspeed Venture Partners are among its foreign investors. It is currently on a $2 billion annualised gross sale run rate.

ET reported earlier this month that Zepto, which has increased its spending significantly to expand its dark stores network as well as consumer incentives, has hit the daily order milestone of one million for the last two weeks.

Blinkit—the market leader—has been clocking one million orders daily in the last quarter. Blinkit parent Zomato is launching its $1 billion qualified institutional placement (QIP) to bulk up new cash against rivals.

Also Read: Cash-rich quick commerce firms rush to grab dark store sites, personnel amid rapid growth