Zepto, the Gurugram-based instant grocery delivery startup, is set to raise approximately $650 million from a mix of existing and new investors, achieving a valuation of $3.5 billion.
The funding round, led by StepStone Group and Nexus Venture Partners, along with participation from Glade Brook Capital and new investors such as Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra, marks a significant increase from its previous valuation of $1.4 billion.
This second large-scale fundraiser within a year underscores Zepto’s aggressive growth strategy in India’s burgeoning quick commerce sector, competing directly with giants like Blinkit, Swiggy Instamart, and BigBasket’s BB Now. Zepto, distinguishing itself as the only pure-play quick commerce company among its competitors, aims to leverage the fresh capital to expand its operational footprint and enhance its market presence.
Goldman Sachs data highlights Zepto as one of the top three players in the Indian quick commerce space, processing 550,000 orders daily across 340 dark stores in seven cities. The company aims for EBITDA breakeven by September 2024, aligning with its strategy to reduce cash burn and achieve sustainable growth amidst intensifying competition.
Investors remain optimistic about the sector’s potential despite global challenges, viewing India’s quick commerce market as a robust $5 billion annual sales channel with promising future growth prospects.
Zepto, StepStone Group, Nexus Venture Partners, and other involved parties have not responded to queries regarding the funding round as of publication.
