Zepto, a leading player in India’s quick commerce sector, has successfully raised $665 million in its latest Series F funding round. This funding, led by new investors Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund), alongside participation from existing backers Glade Brook, Nexus, and StepStone, values the Mumbai-based company at $3.6 billion post-money.
The company, which achieved unicorn status in August last year after a Series E round, has now raised over $1.2 billion to date. This latest injection of capital underscores Zepto’s aggressive expansion plans and its bid to strengthen its position against formidable competitors like BlinkIt and Swiggy Instamart in India’s burgeoning quick commerce space.
Unlike their counterparts in the West, Zepto claims to have developed a sustainable business model, achieving near EBITDA positivity and recording a remarkable 140% year-on-year growth. The firm boasts an annualized gross merchandise value surpassing $1 billion, with 75% of its stores achieving full EBITDA positivity as of May 2024.
Adit Palicha, co-founder and CEO of Zepto, expressed confidence in the company’s fiscal approach amidst rapid scaling, stating, “…We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business.”
This funding round also marks the official launch of Avra Capital, a growth equity fund initiated by Anu Hariharan, former MD of Y Combinator Continuity, with Zepto as its inaugural investment globally.
In financial terms, Zepto reported a substantial increase in revenue to Rs 2,024 crore in FY23, marking a 14-fold rise from the previous year. However, losses widened to Rs 1,272 crore, reflecting the intense competition and aggressive expansion strategies prevalent in the quick commerce sector.
With this latest funding secured, Zepto is well-positioned to accelerate its growth trajectory, expand its market presence, and further solidify its standing as a leader in India’s rapid delivery ecosystem.
