Indian Quick-Commerce Startup Zepto Secures $350 Million in Funding Ahead of Planned IPO

Zepto, a quick-commerce startup in India, has raised $350 million in its third round of financing in just six months as it gears up for an IPO next year. The funding round was backed by Indian family offices, wealthy individuals, and asset manager Motilal Oswal, maintaining Zepto’s $5 billion valuation. Notable backers include Raamdeo Agrawal from Motilal, family offices of Mankind Pharma, RP-Sanjiv Goenka, Cello, Haldiram’s, Sekhsaria, and Kalyan, as well as celebrities Amitabh Bachchan and Sachin Tendulkar.

The funding is the largest fully domestic primary round in India. Zepto has been striving to diversify its investor base, with foreign ownership currently exceeding two-thirds. With this latest funding, the Mumbai-headquartered startup has raised over $1.35 billion since June. The quick-commerce industry in India is witnessing rapid growth, with sales expected to surpass $6 billion this year and projected to reach a market value of $42 billion by 2030. This growth has prompted established players like Flipkart, Myntra, and Nykaa to reduce delivery times in order to compete. Quick-commerce, particularly in India, has gained traction due to the prevalence of unorganized retail stores, creating a parallel convenience-driven commerce segment, according to Morgan Stanley.