Zepto To Raise $300 Million From Domestic HNIs, Family Offices In War Chest Top Up

Zepto is set to raise $300 million or about Rs 2,500 crore from domestic high net worth individuals and family offices as it aims to strengthen its war chest in the increasingly competitive quick-commerce scenario.

The company plans to raise about Rs 2,500 crore at the same $5 billion valuation it raised over a $1 billion in 2024. Family offices like Motilal Oswal's Raamdeo Agrawal and Manipal Group's Ranjan Pai are set to take part in the round, according to people close to the development.

The domestic interest also comes at a time when another major internet company, Swiggy, has gone public. Increased domestic shareholding for Zepto could also mean easier compliance processes when it plans to list on the bourses.

The fresh funding comes at the heels of Zepto expanding to 10 new cities this year, with Ahmedabad, Jaipur, and Chandigarh on the horizon. The company is also going to continue doubling down in its existing markets, where it has already proven high degrees of profitability, continuing to grow the business to over Rs 10,000 crore in sales.

Zepto is currently expanding its dark store network from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business.

The fresh investment could see the company increase its store count beyond 700 as well, given the renewed bullishness from incumbents Swiggy Instamart and Zomato's Blinkit, as well as newer entrants like BigBasket Now and Flipkart's Minutes.