Zepto Rockets to $3.5B Valuation with Massive $650M Funding

Hello,
Both benchmark indices hit record highs yesterday as favourable global cues propelled optimism amongst investors and sustained trading at higher levels. Zepto announced plans for a new funding round that more than doubles its valuation, Adani is set to acquire another cement company called Penna Cement and Vodafone Idea is set to sell a stake in their company for more than 2,000 crore.

Markets📊 
As of 13/06/2024 Market Close

• On Thursday, Sensex and Nifty50 hit record highs, driven by global optimism spurred by a favourable U.S. inflation report, raising hopes for an interest rate cut.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Sobha Ltd +4.97%

• Shares of the South-based realty firm surged 5% following the board's approval for a Rs 2,000 crore equity share issuance through a rights issue.

• The rights issue price is set at Rs 1,651 per share, reflecting a 25% discount.

Sun Tv Network Ltd (2.41%)

• Due to profit-taking following a recent surge to a 52-week high, the stock dropped 2.4%, spurred by Axis Capital's upward revision of its price target for the scrip, which had surged approximately 6% in the preceding session.

Yesterday’s Highlights📒 

• Swiggy has launched a premium grocery quick commerce vertical called Handpicked. (YS)

• io Platforms receives approval from the Indian space regulator to launch an internet satellite. (ET)

• L&T secures a large offshore order from ONGC. (FE)

• The USFDA has issued a Form 483 with five observations to a unit of Torrent Pharma in Ahmedabad. (ET)

• In Q1, the luxury property market in Mumbai saw the third highest price rise globally. (HT)

• KidZania plans to establish additional theme parks across India. (ET)

• Haldia Petrochemicals Limited has announced a 10-year naphtha supply agreement with QatarEnergy. (ET)

• Willow by Cricbuzz has secured a deal with YES Network to broadcast Major League Cricket (MLC) matches. (ET)

• CAMS Repository Services has launched an insurance portfolio management platform. (ET)

• Mondelez has signed an agreement with Lotus to manufacture and distribute Biscoff cookies in India. (FE)

Featured Highlight💡 
Sources: News 18, Moneycontrol, bt

Zepto plans to secure $650Mn with a valuation of $3.5Bn

• Zepto's Major Funding Round: Zepto, the quick commerce major, is set to raise approximately Rs 5429 crore ($650Mn) from both existing and new investors, boosting its valuation to Rs 29,000 crore ($3.5Bn). This round is led by StepStone Group, Nexus Venture Partners, and Glade Brook Capital, with new investors Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra also participating.

• Significant Valuation Growth: The funding round will more than double Zepto's valuation from $1.4 billion in August 2023 to $3.5 billion. This marks a substantial increase from its 2021 valuation of $250 million, highlighting strong investor confidence in Zepto's growth prospects and the quick commerce sector in India.

• Competitive Market Position: Zepto competes against major players like Blinkit, Swiggy Instamart, and BigBasket's BB Now in India's quick commerce market. Blinkit currently holds the largest market share, processing over 700,000 orders per day, compared to Zepto's 550,000 daily orders.

• Operational Metrics and Financial Goals: Zepto operates 340 dark stores across seven cities, handling 550,000 orders daily with an annualized gross order value of $1.2 billion and a take rate of 23%. The company aims to achieve EBITDA breakeven by September 2024 and reduce its cash burn to single-digit millions.

IPO / FPO / Issuances🚀 

• Adani Group plans to embark on a roadshow this week to raise as much as Rs 33,254 crore. (BS)

• Sobha announces Rs 2,000-cr rights issue at Rs 1,651 per share. (Moneycontrol)

This week’s mainboard IPO schedule

1. Ixigo (RHP)

   • Offering Period: 10-12 June, 2024

   • Listing Date: 18 June, 2024

   • Issue Price: 88-93

   • Lot Size: 161

Deal Activity🤝 

M&A / Investments

• JSW Group plans to invest Rs 5.8 lakh crore ($70Bn) over the next six years to expand its capacity. (BS)

• Adani Group unveils a concrete strategy with plans for Rs 24,000 crore ($3Bn) acquisitions in the cement sector. (ET)

• Adani Group's Ambuja Cements plans to acquire Penna Cement for Rs 10,422 crore ($1.19Bn). (BS)

• Zepto plans to secure Rs 5,429 crore ($650Mn) with a valuation of Rs 29,000 crore ($3.5Bn). (Moneycontrol)

• Mercedes Benz plans to invest Rs 3,000 crore ($359Mn) in Maharashtra. (BS)

• Nokia and Ericsson to acquire a stake worth Rs 2,458 crore ($294Mn) in Vodafone Idea in exchange for dues. (BS)

• Suven Pharma is set to acquire a 67.5% stake in Sapala Organics for Rs 229.5 crore ($27.4Mn) (BS)

• Saksoft to acquire Augmento Labs completely with a Rs 100 crore ($12Mn) equity investment. (BS)

Debt

• Bharat Petroleum is seeking a loan of Rs 31,000 crore to finance the expansion of the Bina refinery. (BS)

• Adani's Australian coal port has secured a Rs 2781 crore ($333Mn) million private credit loan. (ET)

Fundraising

• Pavestone VC secures INR 15 crore from Colruyt Group India for its INR 900 crore fund. (Inc42)

• Brookfield Asset Management and ALTERRA Partners have jointly launched a fund aimed at supporting the net-zero transition in emerging markets, including India. (YS)

• South Park Commons, an early-stage venture fund has entered the Indian market through a collaboration with Binny Bansal. (EN)

VC

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