Zepto raises $350 million in latest funding round ahead of IPO, HNIs and prominent family offices participate

Zepto, one of the leading quick commerce platforms in India, announced on Friday that it has raised $350 million in its latest funding round, the third one this year, led by Motilal Oswal Private Wealth, according to reports.

The funding round saw participation from major investors and famous family offices including Motilal Oswal AMC and Raamdeo Agarwal, Taparia Family Office, Mankind Pharma Family Office, Haldiram Snacks Family Office and Cello Family Office, among others. Many high net-worth individuals (HNIs) including Amitabh Bachchan and Sachin Tendulkar invested as well. This is the largest 100% domestic fundraise in the country’s startup ecosystem, the reports added.

Zepto’s valuation is flat and steady at $5 billion. The company has been on an upward trend in 2024, raising over $1 billion in the fiscal year.

“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”, CNBC-TV 18 quoted Aadit Palicha, CEO and Co-founder of Zepto, as saying.

In the last 15 months, Zepto has raised nearly $1.6 billion, strengthening its presence before its upcoming market debut in 2025.

“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” said Aadit Palicha, CEO and co-founder, Zepto, as per a report by Business Standard.

The company is scaling up in preparation for its IPO and is aiming to bring the total number of its dark stores to 700 soon. It is also focusing on expanding the Zepto Cafe, Zepto’s vertical that delivers selected food and beverages in 10-15 minutes, to major cities.

Quick commerce market in India

As per Statista, the quick commerce market in India is consistently growing with a forecasted revenue of $3.35 billion in 2024, which is projected to grow at a compound annual growth rate (CAGR) of 27.42% from 2024 to 2028, reaching $8.83 billion.

While Blinkit, Swiggy and Zepto hold over 90% of the quick commerce market share in India, Blinkit leads the market with nearly 46% market share as of Q1 FY25, and Zepto and Swiggy follow at 29% and 25%, respectively.

A report by Datum suggested that the market share of traditional Kirana stores in the country is declining steadily, falling from 95% in 2018 to 92.6% in 2023. On the other hand, the quick commerce segment is anticipated to grow by 74% in 2024. The market share of Kirana stores is expected to fall to 88.9% by 2028, the report added.