Ranjan Pai, Cipla Family Join Zepto’s Funding Round Amid Expansion Plans
- ByStartupStory | October 22, 2024
Family offices of Manipal Group’s Ranjan Pai, Mankind Pharma’s Ramesh and Rajeev Juneja, and Cipla are reportedly set to join the funding round of quick commerce giant Zepto. This development comes as Zepto continues to attract prominent domestic investors, aiming to bolster its Indian ownership ahead of a planned IPO.
According to a report from the Economic Times (ET), Zepto is focused on “shoring up domestic shareholding with well-known and credible names” through its latest fundraise. The company, which recently raised $340 Mn in August at a valuation of $5 Bn, has secured over $1 Bn in funding this year alone. Earlier, in June, it closed a $665 Mn round at a valuation of $3.6 Bn.
Zepto’s ongoing fundraise of up to $150 Mn is expected to conclude by the end of this month. Several prominent family offices with expertise in ecommerce have been in discussions to invest in the Silicon Valley-backed firm, which has the support of General Catalyst and Nexus Venture Partners. The company is also set to relocate its headquarters to Bengaluru on November 11, according to the ET report.
A source familiar with Zepto’s plans said, “We are doing this fundraise to start building Indian ownership in the company and deepen our relationships with high-quality domestic investors before we kick off an IPO process.”
Zepto’s efforts to increase domestic shareholding come as the company gears up for an IPO in the near future. As per the funding presentation reviewed by ET, Zepto aims to “boost confidence among mutual fund investors for pre-IPO funding and strengthen government trust in the operating structure.”
In line with these objectives, Zepto’s parent company, Kiranakart, has applied to the National Company Law Tribunal (NCLT) to shift its holding company from Singapore to India. This move is part of a broader strategy to make Zepto majority Indian-owned within the next 12-18 months. The NCLT in Mumbai has already started hearings on the matter.
The quick commerce sector has been witnessing rapid growth, drawing attention to the operational models and ownership structures of firms like Zepto, especially its dark stores or mini warehouses that enable 30-minute deliveries. Zepto’s latest funding round and shift to Indian ownership are seen as pivotal moves in securing its position in the market.
Further fueling its growth, Zepto is preparing to enter the buy now, pay later (BNPL) segment with the launch of Zepto Postpaid, which will focus on large order sizes. The company has already claimed that its Gross Merchandise Value (GMV) for FY24 has surpassed $1 Bn, with approximately 75% of its stores achieving full EBITDA positivity as of May 2024.
With plans to expand into Tier II and III markets while deepening its presence in key metros and Tier I cities, Zepto is strategically positioning itself for long-term success. The company’s redomiciling to India is seen as a crucial step in aligning with government policies and preparing for an eventual public offering.
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