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HomeFunding & InvestmentZepto Secures $350 Million, Strengthens Quick Commerce Leadership with $1.35 Billion Raised...

Zepto Secures $350 Million, Strengthens Quick Commerce Leadership with $1.35 Billion Raised in 2024

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Quick commerce startup Zepto has successfully raised $350 million in its latest funding round, spearheaded by Motilal Oswal Private Wealth. The round also saw participation from prominent investors, including Raamdeo Agarwal, the Taparia Family Office, Mankind Pharma Family Office, RP Sanjiv Goenka Group, and several others, alongside celebrity backers Sachin Tendulkar and Abhishek Bachchan.

With this new funding, Zepto’s total capital raised in 2024 now stands at $1.35 billion, contributing to a cumulative $1.85 billion since its inception. Despite the significant investment, the company’s valuation remains unchanged at $5 billion, following its August funding round of $340 million.

Zepto delivers over 25,000 products across multiple categories in under 10 minutes, leveraging its extensive network of more than 550 dark stores nationwide. Processing upwards of 700,000 daily orders, the company serves millions of customers and continues to expand its footprint in the competitive quick commerce market.

Recent data from Motilal Oswal places Zepto as the second-largest player in the sector, holding a 29% market share, trailing Blinkit, which leads with 46%. Swiggy Instamart follows closely with a 25% share.

The Mumbai-based company is nearing EBITDA positivity, reporting an impressive 140% year-on-year growth and an annualized gross merchandise value (GMV) surpassing $1 billion. As of May 2024, nearly 75% of its stores are fully EBITDA positive.

Although Zepto’s FY23 revenue surged 14-fold to Rs 2,024 crore, its losses widened to Rs 1,272 crore. The company projects sales to exceed Rs 5,000 crore in FY24. Founder Aadit Palicha has revealed plans to pursue an initial public offering (IPO) by late 2025 or early 2026. As part of this strategy, Zepto is transitioning its domicile from Singapore to India to streamline the listing process.

This latest funding positions Zepto for robust growth as it continues to redefine the quick commerce landscape in India.

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