Mumbai-based NBFC Elcid Investments has made a follow-on investment of ₹7.5 crore in Zepto, raising its stake to 0.039%. The quick commerce start-up is currently raising a $500 million round led by General Catalyst and Avenir Growth, amid rapid revenue growth and IPO preparations.
Mumbai-based NBFC Elcid investments has announced that the non-banking financial company is making a small investment of ₹7.5 crore in quick commerce start-up Zepto, according to a stock exchange filing.
The NBFC had invested in Zepto last year as well. Following the latest share purchase, Elcid will hold 0.039% stake in the Aadit Palicha-led company. Zepto had raised capital in November 2024, when the start-up was valued at $5 billion.
Currently, Zepto is in the process of closing a larger funding round of approximately $500 million. The fundraise will include both primary and secondary transactions led by existing backers General Catalyst and Avenir Growth.
Amid the fundraising process, the four-year old start-up has also controlled its cash burn and clocked ₹11,109 crore in turnover in FY25. This shows around 150% growth from ₹4,454 crore in the fiscal year 2024.
Zepto's IPO Plans
There has been a delay in Zepto IPO plans due to a private funding opportunity. Earlier, it has planned to go public in 2025. However, the start-up has still not filed the draft red herring prospectus (DRHP) and is now expected to tap the public markets in 2026.
Zepto cofounder and CEO has given clarification on speculations around the IPO plans. “…we are in a position where it looks like – given the company is growth and profitability path – we’ll have a significant increase in our domestic ownership...," Palicha had told The Economic Times.
"We still have about ₹7,000 crore of cash in bank, but our thought process is that, before we actually file for this IPO, we can close a pretty large transaction that puts our domestic ownership and balance sheet at an ever stronger position,” he added, as quoted by the news publication.
As a part of IPO process, the quick commerce start-up has done a bonus issuance, changed its name to ‘Zepto Private Limited’, and drafted about 65% of the DRHP. Hence, Zepto is in position to file the DRHP within weeks.
It has also chosen bankers “Goldman Sachs, Morgan Stanley and Axis Capital” to pursue the listing. The IPO timeline has reportedly been extended multiple times, with internal discussions highlighting the need for stronger financial metrics before pursuing a public listing.
Zepto's Domestic Shareholding Move
Zepto has recently secured a $100 million boost in domestic ownership. The fresh investments came from Motilal Oswal Financial Services founders Motilal Oswal and Raamdeo Agrawal, valuing the company at $5 billion. It aims to increase its domestic ownership to over 50% before listing.
The start-up’s early foreign investors are diluting their stake, offloading 10–15% of their holding. Currently, Zepto’s domestic shareholding stands at 18%, but this percentage is expected to surpass 20% after the secondary deals. It is pertinent to note that Zepto’s last funding round was also led by domestic investors.
