Wednesday, July 24, 2024

Zepto Secures $665M in Funding, Aims to Expand Store Count to Over 700 by March 2025

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Zepto, India’s fastest-growing quick commerce platform, has raised $665 million at a $3.6 billion valuation in a highly oversubscribed funding round. This comes just nine months after the company raised $235 million at a $1.4 billion valuation. The latest investment round was led by Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund), with participation from existing investors such as Glade Brook, Nexus, and StepStone, along with Goodwater and Lachy Groom.

Zepto’s business performance has shown remarkable growth, with its GMV (Gross Merchandise Value) surpassing $1 billion annually. As of May 2024, approximately 75% of Zepto’s stores are fully EBITDA positive, achieving profitability in just six months, compared to the previous 23 months.

Commenting on Zepto’s growth, Aadit Palicha, Co-founder and CEOZepto, said, “The growing  profitability of our stores has enabled rapid expansion while achieving near EBITDA positivity at the company level. By reinvesting the capital generated from mature stores, we plan to scale from 350 to 700 stores. If we can maintain customer satisfaction and operational discipline, we aim to go public soon.”

Kaivalya Vohra, Co-founder and CTO, Zepto, added, “The next phase of Zepto’s journey includes major projects that will significantly enhance customer experience, such as launching new categories and expanding initiatives like Zepto Pass. To support this growth, we plan to hire top talent across engineering, product, growth, finance, operations, and category management.’’

This fundraising also marks the formal launch of Avra Capital, a growth equity fund started by Anu Hariharan, the former MD of Y Combinator Continuity.

Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has quickly risen to prominence as one of India’s leading quick commerce platforms. Headquartered in Mumbai, Zepto delivers over 10,000 products across multiple categories in just 10 minutes through its extensive network of delivery hubs nationwide.

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