Quick commerce platform Zepto has secured $350 million in its third funding round this year, led by Motilal Oswal Private Wealth. The round attracted investments from prominent investors and family offices, including Motilal Oswal AMC, Raamdeo Agarwal, the Taparia Family Office, Mankind Pharma Family Office, RP Sanjiv Goenka Group, Cello Family Office, Haldiram Snacks Family Office, Sekhsaria Family Office, Kalyan Family Office, Happy Forgings Family Office, and Mothers Recipe Family Office (Desai Brothers). Celebrity investors such as Sachin Tendulkar and Abhishek Bachchan also participated.
In a conversation with CNBC-TV18, Co-Founder and CEO Aadit Palicha highlighted that the domestic funding would help Zepto “increase Indian ownership going into an IPO” and enhance public trust. “We are not Amazon or Walmart. This is, in spirit, an Indian company, and we’ll get listed in Indian public markets soon. By the next fiscal year, we’ll be a fully Indian-owned company,” Palicha said.
When asked if the domestic fundraise was driven by FDI regulations concerning retail and e-commerce, Palicha clarified, “We’re not concerned about FDI compliance. We feel confident in the work that we’ve done, and we’re compliant.”
Addressing concerns about predatory pricing, Palicha stated that only 0.2% of Zepto’s units in FY24 were sold below the manufacturer’s cost price, while 99.8% had a margin. “This is EY-verified. If anyone wants to verify, they are welcome to visit our office,” he said. Palicha explained that Zepto’s model creates “structural deflation and value” by eliminating inefficient middlemen, directly sourcing from manufacturers, and offering customers better prices.
On November 13, the Confederation of All India Traders (CAIT) released a white paper accusing quick commerce platforms of misusing FDI to control supply chains, inventory, and pricing, thereby harming small retailers and threatening the survival of 30 million kirana stores.
Dismissing these allegations, Palicha said, “We’re growing, there’s no doubt about it, but the kirana stores are not shrinking.” Palicha noted that India’s consumption is expected to grow by $200 billion in the next five years. “Even if we grow 1,500% in the next 4-5 years, from $6 billion to $90 billion, we’ll account for less than half of the incremental consumption. Where is that additional $100 billion going? Mostly to kirana stores,” he emphasized.
Highlighting employment generation, Palicha described Zepto as a “net job creator and net wage additive.” The quick commerce industry has created 4.5 lakh jobs in 36 months, with Zepto contributing about 1 lakh, Palicha observed. Adding that over the past 90 days, Zepto has created 25,000 new jobs. Many of its delivery partners, who previously earned ₹10,000–₹15,000 per month, now earn around ₹23,000 per month.
Zepto’s impressive fundraise comes amid intense competition from Blinkit (owned by Zomato), Swiggy Instamart, and BigBasket, all aggressively scaling their quick commerce operations. Amazon and Flipkart are also upping the ante. Swiggy Instamart has gained momentum following Swiggy’s strong stock market debut.Blinkit (owned by Zomato), Swiggy Instamart, and BigBasket, all aggressively scaling their quick commerce operations. Amazon and Flipkart are also upping the ante. Swiggy Instamart has gained momentum following Swiggy’s strong stock market debut.
Looking ahead, Zepto plans to go public on Dalal Street by late 2025 or early 2026 and is expected to file its DRHP soon. By the time of its IPO, the co-founders are projected to own about 20% of the company. With the latest funding, domestic investors now hold about 35% of Zepto’s stake. Its cap table features marquee VC funds such as General Catalyst, Dragon Fund, Epiq Capital, Lightspeed Ventures, StepStone, Nexus Venture Partners, and Glade Brook Capital among others.
