DST Global, Lightspeed Venture Partners to join Zepto's ongoing fundraise: Report
Quick commerce unicorn Zepto plans to raise $300 million-350 million through the round, which could value the company at around $3 billion.
Yuri Milner’s investment fund and are expected to take part in quick commerce unicorn Zepto's ongoing fundraise, according to a report by The Economic Times.
Milner is an Israeli technology investor, science philanthropist, and entrepreneur.
plans to raise $300 million-350 million through the round, which is nearing completion. This could value the company at around $3 billion.
According to the report, the round will also see participation from a set of private equity funds and existing backers, including Nexus Venture Partners.
Zepto, DST Global, Lightspeed Ventures, and Nexus Ventures did not respond to queries sent by YourStory.
Aadit Palicha-led Zepto had raised $200 million in August last year, taking its valuation to $1.4 billion. The round saw participation from existing investors, including Nexus Venture Partners, Glade Brook Capital, and Lachy Groom. StepStone Group and Goodwater Capital also joined the company as new investors.
The company said it planned to use these funds to deepen its presence in Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Pune, and parts of Kolkata. During that time, Palicha announced the company’s expectation to hit EBITDA-level profitability in the next 12-15 months. He also highlighted that sales have grown 300% year on year and Zepto was on track to achieve $1 billion in annualised sales within the next few quarters.
Investors have been bullish on the feasibility of quick commerce startups despite high cash burn. According to Baron Capital, there is immense scope for scaling in India’s food delivery industry due to factors such as a growing middle class, rising disposable income, and higher smartphone penetration.
Swiggy has confidentially filed the draft IPO papers for a $1.25-billion public listing. The company's valuation rose to $15.1 billion after Baron Capital marked up the value of its stake in the company to $109.16 million from its original investment of $76.77 million.
Zepto is also planning to float an initial public offering (IPO) by early 2025.
According to media reports, Zomato will invest Rs 300 crore in its quick commerce unit Blinkit as it ramps up it offerings in the face of stiff competition from Zepto and Swiggy’s Instamart.
In its latest quarterly earnings, Zomato announced that Blinkit had turned EBITDA positive in March 2024. It also outlined the company's plans to expand its quick commerce operation in FY25.
Edited by Swetha Kannan