Zepto's current funding round is anticipated to include participation from Yuri Milner's DST Global and Lightspeed Venture Partners. This is as per a report by the Economic Times.
This, along with other new participants, could reportedly reshape the fundraising landscape for the quick commerce unicorn. The quick commerce platform is expected to raise $300–350 million, valuing it at $2.5–3 billion. Other investors that are expected to lead the round include Abu Dhabi Investment Authority (ADIA) and General Atlantic.
A group of private equity funds and Zepto's existing investors, including Nexus Venture Partners, are also involved in what has become one of the most coveted deals in the consumer internet sector this year.
Speaking to the Economic Times, a source said, “The round kicked off sometime in April and has since piqued the interest of many bulge-bracket investors.” Further, other external investors might also reportedly join the round.
Read: Why Aren't Swiggy and Zepto Following Zomato's B2B Grocery Path?
This funding is being reportedly pitched by the Quick Commerce platform as a pre-IPO round. This comes at a time when Zepto is also planning to shift its domicile back to India from Singapore. As per the report, Zepto is in the final stage of filing an application to shift its domicile.
Russian-Israeli tech billionaire Yuri Milner’s investment fund has scaled back its exposure to India. Thus, the interest from DST Global is reportedly noticeable. Additionally, the investment in LightSpeed will be made through its growth-stage vehicle.
LightSpeed invests in both the early and growth stages. Speaking to Business Standard, Rahul Taneja, partner, Lightspeed India, said, “If there is a market to invest in the world right now, it is India. There is some rebalancing of capital allocation across the world. A number of limited partners (LPs) are reassessing their exposure to China and increasing their weight toward India.”
Interest in quick commerce has been intensifying rapidly, with new players such as Reliance and Flipkart set to enter the space. As per Redseer Strategy Consultants, “Q-commerce, with a $2.8 billion current market size, is set to become a disruptive force, poised to reshape the retail industry.” Additionally, Zomato also pumped Rs 300 crore into Blinkit.
