Zepto, a rising star in India’s consumer internet sector, has recently completed a remarkable fundraising round, securing $665 million from a consortium of new and existing investors.
This influx of capital has propelled Zepto’s valuation to an impressive $3.6 billion, solidifying its position as a prominent player in the quick commerce space.
Founded in 2021, Zepto made waves last August when it achieved unicorn status after raising $235 million. Since then, the company has experienced explosive growth, with its Gross Merchandise Value (GMV) surpassing $1 billion annually. Notably, approximately 75% of Zepto’s stores have achieved positive earnings before interest, taxes, depreciation, and amortization (EBITDA) as of May 2024, a significant improvement from previous years.
Aadit Palicha, co-founder and CEO of Zepto, highlighted the company’s accelerated path to profitability, noting that stores now achieve EBITDA positivity in just six months, down from 23 months previously. This efficiency has enabled Zepto to expand rapidly while maintaining fiscal discipline, preparing the company for potential future milestones such as an initial public offering (IPO).
Kaivalya Vohra, co-founder and CTO, emphasized Zepto’s ambitious plans for enhancing customer experience through innovative projects like Zepto Pass and expanding into new product categories. To support these initiatives, Zepto plans to recruit top talent across various departments, further fueling its growth trajectory.
The funding round also marked the launch of Avra Capital, a growth equity fund led by Anu Hariharan, a former Managing Director at Y Combinator Continuity. Avra Capital’s investment in Zepto signifies its confidence in the company’s disruptive potential within the global e-commerce landscape.
As Zepto continues to innovate and expand its footprint, the company remains focused on delivering value to customers while pursuing sustainable growth strategies. With its latest valuation milestone and robust investor backing, Zepto is poised to redefine the future of e-commerce in India and beyond.