Quick commerce unicorn Zepto is reportedly in discussions to secure an additional $400 million in funding, which would value the company at $4.6 billion. This comes just a week after Zepto raised $665 million in a previous funding round that valued it at $3.6 billion, according to a report by The Information.
The latest funding talks involve several firms, following the recent round co-led by DST Global and Avra, with participation from Avenir, Nexus Venture Partners, StepStone Group, Contrary, and Glade Brook Capital.
Zepto’s Co-founder and CEO, Aadit Palicha, highlighted the company’s robust financial performance, expecting to surpass $1.5 billion in annualized sales next month. Currently, Zepto is generating annualized gross profit at a rate of $300 million based on its current monthly profit metrics. The company declined to comment on queries from Yourstory.
Previously, Zepto announced significant year-on-year growth in GMV to over $1 billion, with approximately 75% of its stores achieving full EBITDA positivity as of May 2024. This level of profitability, achieved within six months, marks a notable acceleration compared to the previous two years.
With plans to double its store count from 350 to 700 by reinvesting profits from mature stores, Zepto aims to maintain fiscal discipline while scaling operations. “If we are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon,” Palicha stated.
This latest funding round and Zepto’s accelerated growth underscore its position as a formidable player in the quick commerce sector, poised for further expansion and potential public offering.
