Zepto’s Early Investors Reap Massive Returns – Up to 6,000% Gain in Secondary Markets

• ByStartupStory     |    July 14, 2023

Quick commerce platform Zepto, on track to become India’s first unicorn of 2023, is making room on its cap table by providing secondary exits to some of its early backers. The Y Combinator-backed startup is in discussions to raise approximately $150 million from StepStone group, Nexus Ventures, and Gladebrook Capital, aiming for a valuation of around $1.3 billion. As Zepto faces stiff competition from Swiggy’s Instamart and Zomato-owned Blinkit in the quick commerce space, this funding round becomes crucial.

To accommodate new investors, Zepto is offering exits to a group of early investors, who will sell shares worth $9.6 million in a secondary transaction. Regulatory documents reveal that eleven investors, including notable names such as Jim Breyer, Mohandass Kalaichelvan, Nilam Ganenthiran, and Ravi Inukonda, will transfer their shares to a special-purpose vehicle. These early investors, who acquired stakes in Zepto between January 2021 and May 2022, are expected to earn returns as high as 6,000% on their initial investments through this secondary exit.

The value of holdings for early backers, including Oliver Jung and Global Founders Capital, has already increased by over 200% during Zepto’s successive funding rounds in the past two years. For instance, New York-based investor Jacob Honig, who invested $50,000 in Zepto in early 2021, will be transferring his entire stake, expecting to make around $3.1 million. While fresh shares are yet to be allocated to incoming investors, Zepto aims to achieve profitability in 2024 with the upcoming capital infusion playing a significant role.

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