Athira Sethu
Kochi, 18 November 2024
Zepto, one of India’s fast-growing grocery and essentials delivery startups, is raising $300 million in new funding, a report in the Economic Times said. The latest investments include well-known Indian business families and celebrities, including actor Amitabh Bachchan and cricketer Sachin Tendulkar, who are joining the equity sale. The funding will help Zepto take on the likes of Blinkit, owned by Zomato, and Instamart from Swiggy.
The company had originally planned to raise less, but increased the amount due to huge interest from investors. This would be a strategic move of Zepto to consolidate its position in the fast-growing quick commerce market where delivery speed is key. The company is also building up local ownership, which would help it meet Indian government regulations. Domestically domiciled investors will own around 35% of the company, after the new funding round, including two young founders; Aadit Palicha and Kaivalya Vohra will hold together 18%.
Zepto has been burning cash as its costs running over $30-35 million per month owing to putting up dark stores and discounts to attract customers. It recently touched a million orders a day at the same clip as competition. The company has also seen that its average order value increasing.
In addition to such huge funding, the quick commerce company is focusing on economies of scale while making services more efficient through offering discounts for bulkier orders, thereby saving on delivery and packaging costs. With all this, Zepto is trying its best to keep up with competitors while growing the market share.
