Zepto raises $200 million to increase domestic ownership

Zepto, a startup valued at $5 billion, is planning to raise over $200 million through a secondary share sale. This effort aims to increase domestic ownership in the company from 33% to at least 40% ahead of its planned initial public offering (IPO). Ultimately, Zepto wants to raise domestic ownership to 50%. Edelweiss Financial Services and Motilal Oswal Financial Services will purchase shares from global investors as part of this sale. Zepto recently shifted its headquarters from Singapore to India and is preparing to file its draft IPO papers within the next month. In its previous funding round, Zepto raised $350 million, mainly from domestic investors, including several Indian family offices. The company has seen significant growth, claiming an annual gross order value of $3 billion. With strong investor interest in the instant delivery market, Zepto is looking to double its valuation to around $10 billion for its IPO. It faces competition from other companies like Zomato and Swiggy in the food delivery sector.