Zepto, a quick commerce platform, is on the verge of becoming a unicorn with its latest funding round. The startup, backed by Y Combinator, is in talks to raise approximately $150 million from StepStone Group, as well as existing investors Nexus Ventures and Gladebrook Capital. This funding will place Zepto’s valuation at around $1.3 billion. The company is facing tough competition from rivals Swiggy’s Instamart and Zomato-owned Blinkit, who together dominate around 80% of the quick commerce market in India.
To make room for new investors, Zepto is offering exits to some of its early backers. Regulatory documents reveal that these investors, including prominent names like Jim Breyer, Mohandass Kalaichelvan, Nilam Ganenthiran, and Ravi Inukonda, will transfer their shares worth $9.6 million into a special-purpose vehicle. These early investors stand to earn impressive returns, with some expected to make as much as 6,000% on their initial investments through this secondary exit.
While Zepto has yet to allocate fresh shares to incoming investors, the value of holdings for its early backers, such as Oliver Jung and Global Founders Capital, has already increased by over 200% during the startup’s successive funding rounds over the past two years. As Zepto aims to achieve profitability by 2024, the forthcoming capital infusion will play a crucial role in attaining this milestone.
The funding news positions Zepto as a significant player in the competitive quick commerce space in India. With its focus on delivering goods rapidly to consumers, the company is poised for further growth and expansion. As the market evolves and more consumers embrace the convenience of quick commerce, Zepto’s innovative approach and strategic funding will enable it to solidify its position as a key player in the industry.
Overall, Zepto’s entry into the unicorn club and its ongoing efforts to secure funding reflect the company’s ambition and potential for success. With a strong foothold in the Indian market and an increasingly valuable network of investors, Zepto is well-positioned to drive the growth of the quick commerce sector and revolutionize the way consumers access essential products.
