Zepto Plans $250 Million Secondary Round for IPO Preparation

Zepto, a player in the quick commerce and foodtech space, is currently negotiating a secondary funding round amounting to $250 million, which will facilitate existing shareholders to sell their equity. This initiative is designed to bolster Indian investor ownership right before Zepto’s intended IPO this year.

Bloomberg initially reported this news, highlighting that the private equity divisions of Motilal Oswal Financial and Edelweiss Financial Services are in talks to purchase shares from this secondary offering.

The expected transactions will occur at a valuation exceeding $5 billion. It is significant to mention that Zepto previously secured $350 million in its last funding round at the same valuation of $5 billion, with Motilal Oswal taking the lead as an investor.

In 2024, under the leadership of Aadit Palicha, the company managed to accumulate $1.35 billion in funding, raising its total financial backing to $1.85 billion since its establishment.

Zepto is capable of delivering more than 25,000 products across a range of categories within a quick 10-minute timeframe, utilising its extensive network of dark stores. The company operates over 550 dark stores and handles more than 700,000 orders on a daily basis.

Additionally, through its separate application, Zepto Cafe, the company ranks among the top providers of 10-minute food delivery services.

According to various reports, Zepto’s operational revenue saw a remarkable increase of 2.2 times, rising to Rs 4,454 crore in FY24 from Rs 2,026 crore in FY23. At the same time, the company was able to decrease its losses slightly by 2% during the same fiscal year.

Earlier in the year, Zepto made the strategic decision to relocate its domicile from Singapore to India, a move anticipated to accelerate the process of being listed on the Indian stock exchange.