Quick-Commerce Firms Raise ₹44,000 Cr via IPOs in FY25, Surpassing Private Capital

Indian venture‑backed quick‑commerce startups have shifted their funding strategy in FY25, with public market instruments such as IPOs, FPOs and QIPs drawing significantly more capital than traditional private investment. According to data from RainGauge’s FY25 Annual Update, these companies raised over ₹44,000 crore (approximately $5.3 billion) from public markets—more than twice the funds raised from private capital sources.

Public Funding Surges in FY25

The dominance of public market fundraising marks the first time that such sources have decisively surpassed private equity for late‑stage capital in India. IPOs, followed by follow‑on public offerings and qualified institutional placements, emerged as the clear preferred route for expansion capital in quick‑commerce firms.

This shift signals growing investor confidence in public market exits and a maturing startup ecosystem.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Zepto Tops Private Capital Rankings

Among the quick‑commerce crowd, Zepto stands out in private capital charts. The Bengaluru‑based firm, valued at over $5 billion, secured multiple high‑value financing rounds—most recently raising $350 million in late 2024, building on earlier rounds including $665 million in mid‑2024.

These investments included funding from Indian celebrity‑backed family offices and marquee PE investors, helping raise its total private capital above $1.3 billion in 2024 alone.

While Swiggy and Zomato are the dominant public names in quick‑commerce, Zepto’s fundraising pace has fast put it among the most aggressively backed players.

Market Share Breakdown

In Q1 FY25, Blinkit—the quick‑commerce arm of Zomato—led the landscape with a 46% market share. Zepto trailed with 29%, while Swiggy’s Instamart held around 25%.
 Despite the fierce competition, all three continue to attract substantial capital and fuel expansion across urban India.

Drivers Behind the Capital Shift

Analysts highlight several catalysts for this funding dynamic:

• Investor trust in public market traction: Institutional and retail appetite for IPOs and QIPs has surged, with several flagship listings and strong subscription trends.
• Pressure on private capital: Late‑stage funding from VCs and PEs is being outpaced, as public market clarity offers better exit visibility.
• Rapid industry scale: Quick‑commerce has grown exponentially—from negligible size in 2020 to billions in GMV today, creating urgency for large capital injections.

Risks and Sustainability Concerns

Despite the capital war-chest building, experts warn about sustainability. TVS Capital Fund’s chairman characterised the quick‑commerce frenzy as potentially unsustainable—arguing that many firms rely on endless VC or PE funding without a viable long-term business model.

Market commentator Nischal Maheshwari flagged regulatory and volume issues, particularly for Zepto, calling them short-term hurdles that require stronger systems for sustainable growth.

Sector Outlook

With public market instruments now commanding the funding pipeline, India’s quick‑commerce sector appears to be undergoing a structural realignment. The influx of IPOs and QIPs highlights rising confidence in scaling these businesses. Zepto’s aggressive capital‑raising trajectory underlines its ambition to stay competitive with Blinkit and Swiggy, even as regulatory and structural challenges remain.

Conclusion

FY25 witnessed a pivotal shift in Indian quick‑commerce funding: public markets outpaced private capital for the first time. With over ₹44,000 crore raised through IPOs, FPOs and QIPs, Bengaluru’s Zepto has emerged as a leading recipient of private capital. As Blinkit, Swiggy, Instamart and Zepto vie for market dominance, the competition will increasingly unfold in public investor forums. Yet long-term success hinges on regulatory clarity, sustainable unit economics, and system robustness.