Zepto’s coffers will receive the majority of the $450 million, about $350–$380 million, in main capital. According to individuals who spoke to Moneycontrol, the remaining $70-100 million would come from secondary share transactions in which early investors will sell shares.
As the rapid commerce unicorn seeks to expand its offers, grow its business, and gain market share in a competitive environment, Zepto is in the advanced stages of financing $450 million, or around Rs 3,900 crore, according to persons familiar with the situation who spoke to Moneycontrol.
In charge of Zepto’s most recent fundraising campaign?
According to reports, General Catalyst (GC), a previous Zepto supporter, and new investor California Public Employees’ Retirement System (Calpers), a US pension fund, are co-leading the company’s most recent round.
According to one of the individuals mentioned above, “the other internal investors such as Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners will put in the remainder to hang on to their investment by participating in the current round.”
Moneycontrol exclusively revealed in July that Zepto was negotiating a new round of funding in which it would receive $500 million from GC and other investors at a value of $7 billion.
Moneycontrol did not get a response from Zepto or Calpers.
What is the round’s construct?
About $350-$380 million, or the majority of the $450 million, will be in primary capital that will flow straight into Zepto’s coffers. Early investors will sell their shares to new, arriving investors in secondary share purchases, which will account for the remaining, little amount of perhaps $70-100 million, according to sources.
What is the value of Zepto?
According to one of the people mentioned above, Zepto saw a “growth of over 20 percent in order volumes,” bringing its valuation up 40 percent from $5 billion only a year ago to $7 billion.
How does fast commerce affect the level of competition?
Zepto’s fundraising campaign is probably going to restore the level of competition that existed in the rapid commerce sector eight to ten months ago.
As other publicly traded companies, such as Swiggy’s Instamart and Eternal’s Blinkit, prioritized profitable expansion, the rapid commerce sector has seemed to be slowing down in recent months. To expand its market share, Zepto, which will have plenty of money, will try to make up some lost ground and boost expenditure.
Swiggy’s Instamart and Zepto are always vying for second and third place, while Eternal’s Blinkit is the biggest player. One player gains an advantage over the other with higher marketing expenditures.