Zepto's Looks Out For Fresh Funding Round Of $250 Million Amid Monthly Cash Burn Of ₹300 Crore: Report

Quick commerce startup Zepto, archrival of zomato-owned blink It intends to raise roughly USD 250 million (Rs 2,111 Crore) According to reports, the company is considering a valuation of more than USD 5 billion, and high-net-worth individuals and family offices will be part of the funding round. By the end of this month, the start-up will conclude the funding round, according to the sources.

Given that its rivals are making significant investments to broaden their reach, this funding will support Zepto's expansion. Zepto raised USD 665 million in June of this year at a valuation of USD 3.6 billion, and the company is prepared to go public shortly.

Growth of Quick Commerce space

The market is expected to grow significantly, and the country's quick commerce segment has been growing significantly. By 2025, RedSeer predicts a 15x increase in India alone.

Aadit Palicha and Kaivalya Vohra founded the quick commerce start-up in 2021. It has since relocated its headquarters to Bengaluru and hired roughly 600 employees in just the last few months.

Sriharsha Majety, the group CEO and co-founder of Swiggy, recently stated that quick commerce is the most popular category in town due to its rapid growth and enormous TAM (total addressable market), which can reach USD 30–USD 50 billion in four years with a strong compound annual growth rate.

Zepto's cash burn

Two of the individuals mentioned in the Moneycontrol report stated that although the company spent Rs 250 crore, or about USD 30 million, in September, the monthly cash burn reached about USD 35 million (Rs 300 crore) in October.

They also added that it is probably going to remain in the Rs 300 crore range for November. Indeed, this also falls during India's annual holiday season, which is the busiest time of year for e-commerce and, more recently, quick commerce businesses.