Ten-minute grocery delivery startup Zepto has been garnering lots of interest from consumers and investors alike. While customers are amazed with its ultra-fast delivery, large US-based tech investors are bullish on the company’s future prospects.
Mumbai-based Zepto is likely to end up raising over $250 million in a new round, said three people aware of the details of the transaction.
“Zepto already had a commitment of about half of the round size [$125 million] and is now in conversations to mop up another $125 million from new and existing investors,” said one of the people aware of the details of the potential transaction requesting anonymity.
Entrackr had exclusively reported on November 11 that Zepto is in talks to raise over $100 million in a new funding round at a valuation of $500 million.
According to sources, the talks have moved beyond early-stage and the terms of the deal are being drawn. And with more infusion of funds, the valuation is expected to get higher. “The company will be valued at about $1 billion (post-money) after this round,” said another person who also requested anonymity.
Entrackr couldn’t ascertain the name of new investors joining the potential round. Y Combinator, Glade Brook Capital, Nexus, Global Founders Capital are its existing backers. Zepto recently raised $60 million at a valuation of $250 million.
Queries sent to Zepto and Y Combinator didn’t elicit any immediate response.
If the deal goes through, Zepto will become one of the fastest startups to achieve unicorn status. Recently, marketplace rollup platform Mensa Brands became a unicorn within six months of its inception. Professional networking platform Apna also attained the feat in 21 months.
Zepto enables online grocery ordering and delivers them within ten minutes in a few locations of Mumbai, Bengaluru, Hyderabad and Delhi (NCR). According to the company’s website, it will soon go live in Kolkata and Pune.
Here and now grocery delivery space has turned into a battlefield for deep-pocketed unicorns including Zomato and Swiggy. While Zomato had backed Grofers with a long term plan to acquire the Tiger Global-backed firm, Swiggy had announced to invest $700 million in its quick grocery play: Swiggy Instamart.