Quick commerce major Zepto is in advanced stages of raising $450-500 million in fresh primary capital from existing investors General Catalyst and Avenir Growth, according to sources familiar with the matter. The startup is expected to command a valuation of $6-7 billion in the fresh round, a 40% mark-up from its previous $5-billion valuation.
General Catalyst and Avenir Growth are expected to contribute the bulk of the fundraise, with other existing investors may participate on a pro-rata basis. The round is anticipated to close within a month, sources indicated.
The talks for fresh capital come as Zepto is in the midst of closing an extended $500 million domestic secondary funding round led by Motilal Oswal Private Wealth at a flat $5 billion valuation. It saw Motilal Oswal and Raamdeo Agrawal, founders of Motilal Oswal Financial Services (MOFSL) participate in their personal capacity.
Prominent Indian family offices and high-net-worth individuals, including cricket legend Sachin Tendulkar and actor Abhishek Bachchan also participated in the round, according to sources. The secondary round came as part of Zepto’s efforts to become a majorly domestically owned entity, ahead of its planned IPO sometime next year. The startup’s domestic ownership currently stands at around 40%, following the recent influx of Indian investors. However, once the international primary funding round closes, this domestic shareholding is expected to decrease to approximately 35% as foreign institutional investors anchor the round.
Despite this reduction, Zepto remains confident about achieving majority Indian ownership ahead of its planned listing. In terms of market share, Zepto holds 26% in the quick commerce space, behind market leaders Blinkit at 41% and Swiggy Instamart at 27%, according to JM Financial’s analysis.