SUMMARY
- Zepto bags $340 million, increasing its valuation to $5 billion.
- The company plans to double its dark stores and expand into new markets by March 2025.
- Zepto nears EBITDA positivity with 140% YoY growth and a GMV exceeding $1 billion.
Zepto, a prominent player in the quick commerce sector, has raised $340 million in a follow-on financing round led by General Catalyst, with participation from new investors Dragon Fund and Epiq Capital. The round also saw additional investments from existing backers including StepStone, Lightspeed, DST, and Contrary. This fresh infusion of capital has elevated Zepto’s valuation by nearly 40%, reaching $5 billion, up from $3.6 billion in June 2024, when it closed a $665 million Series F round.
With over $1 billion raised in 2024 and $1.2 billion over the past 12 months, Zepto has amassed more than $1.5 billion since its inception. The company plans to double its network of dark stores to 700 by March 2025, expanding into new cities such as Nasik, Chandigarh, Vizag, and Ahmedabad, while also increasing its footprint in existing metro areas.
Co-founder and CEO Aadit Palicha highlighted two primary reasons for the follow-on funding: the strategic opportunity to bring General Catalyst’s Neeraj Arora on board and the need to reinforce the balance sheet as Zepto continues to exhibit substantial growth and improved operating leverage.
Zepto serves millions of customers by delivering over 10,000 products across various categories within 10 minutes, using a robust network of delivery hubs across India. The Mumbai-based firm claims it is on the cusp of achieving EBITDA positivity, reporting 140% year-on-year growth and an annualized gross merchandise value (GMV) of over $1 billion (INR 8,300 crore). As of May 2024, approximately 75% of its stores were fully EBITDA positive.
In FY23, Zepto recorded a dramatic 14-fold surge in revenue, reaching INR 2,024 crore, though its losses widened to INR 1,272 crore. The competitive landscape of quick commerce is heating up with Flipkart’s recent entry, BigBasket’s shift to rapid delivery, and Amazon’s expected debut next year. Currently, Blinkit, owned by Zomato, leads the market, followed by Swiggy Instamart, Zepto, and Tata Digital-owned BigBasket.
