Quick-commerce powerhouse Zepto is set to welcome prominent Indian investors Ranjan Pai of Manipal Group and the Cipla family in a strategic $150 million funding round, marking a significant shift toward domestic ownership in the startup’s investor portfolio. The investment, expected to close by October-end, comes as the company prepares for its anticipated IPO in 2025.

The latest funding round follows Zepto’s remarkable trajectory in 2024, which saw the company’s valuation soar to $5 billion after securing $340 million in August and $665 million in June. This strategic move to bring in established Indian investors represents a deliberate pivot from the company’s traditionally foreign-backed funding structure.

The investment marks a strategic evolution in Zepto’s growth story, as it seeks to strengthen its credibility in the Indian market by partnering with well-respected domestic investors. Ranjan Pai, known for his strategic investments in the Indian startup ecosystem through the Manipal Group, and the Cipla family, with their pharmaceutical legacy and expanding technology portfolio, bring significant institutional weight to Zepto’s cap table.

Industry experts view this development as a crucial step in Zepto’s pre-IPO preparation. “The inclusion of heavyweight Indian investors like Ranjan Pai and the Cipla family signals Zepto’s maturity as a business and its readiness for public markets,” notes a market analyst familiar with the quick-commerce sector. The move aligns with a growing trend among Indian startups to diversify their investor base with domestic capital before going public.

The quick-commerce startup has demonstrated impressive operational metrics that justify investor confidence. Operating 350 dark stores across 10 major cities, Zepto has captured 22% of the market share in 2024, up from 15% in early 2022. This growth comes despite fierce competition from established players like Blinkit, Swiggy Instamart, and BigBasket.

Key Statistics:

– Current valuation: $5 billion (August 2024)
– Total fundraising in 2024: Over $1.15 billion across three rounds
– Operational presence: 350 dark stores with plans to expand to 700 locations
– Market share growth: From 15% (2022) to 22% (2024)

The investment carries broader implications for India’s startup ecosystem. It represents a growing confidence among traditional Indian business houses in new-age startups, potentially paving the way for more domestic capital participation in the technology sector. This shift could help reduce Indian startups’ dependence on foreign capital while providing them with strategic advantages in navigating local markets and regulations.

The funding also highlights the maturing quick-commerce sector in India, which has evolved from a niche service to a mainstream retail channel. Zepto’s success in attracting established Indian investors could encourage other startups to prioritize building relationships with domestic institutional investors, particularly when planning for public market debuts.

Looking ahead, Zepto’s strategic funding round represents more than just capital raising – it’s a blueprint for Indian startups aiming to build sustainable businesses with strong domestic backing. As the company moves toward its 2025 IPO, this latest investment from Ranjan Pai and the Cipla family could set a new precedent for startup funding strategies in India’s evolving technology ecosystem.