Zepto is a quick commerce company offering an Instant Grocery Delivery platform that has raised $340 million in follow-up funding rounds at a valuation of 5 billion USD. This round was led by the existing investor General Catalyst. Other investors participated, including StepStone, DST, Lightspeed, Contrary, Dragon Fund, and Epiq Capital. The company plans to scale and double its retail stores from 350 to 700 by the end of March 2025.
The company reported that its valuation has increased by around 40 percent compared to $3.6 billion in June. The unicorn has secured over $1.5 billion since its inception, including 665 million USD raised from its existing investors during the Series F funding round. The company reduced the time for its stores from 23 months to six months to achieve profitability. This initiative helped them make a profit faster, enabling Zepto to grow while achieving positive EBITDA at a company level. The firm is focused on reinvesting the capital generated from stores into the business. They plan to go public soon while hiring a team for engineering, finance, operation, category management, and growth.
The quick commerce startup aims to expand its service in new markets such as Chandigarh, Ahmedabad, Nasik, and Vizag while increasing its market presence in the existing metro cities. The company also announced its plan to move its base to India with a public listing in 2026. The startup claims to have achieved a positive EBITDA with 140 percent YoY and an annualized gross merchandise value of over $1 billion. Zepto has served millions of customers through its delivery centers worldwide by delivering around 10,000 products across various categories within 10 minutes. This investment will help the company advance its technologies to compete in the quick commerce sector.
Zepto reported a 14-time increase in its revenue to Rs 2,024 crore in FY23. However, the net losses also increased to Rs 1,272 crore in the same duration. This Mumbai startup competes with other quick commerce platforms including Blinkit, Swiggy Instamart, and Gorillas. The development came just when the quick commerce market saw increased investor interest. Flipkart’s entry into the market and BigBasket’s shift to rapid delivery made this sector more competitive. The tech giant Amazon is expected to enter the market next year.
Conclusion:
Zepto is a grocery Delivery Startup that secured 340 million USD in a funding round at a valuation of 5 billion USD. General Catalysts led the follow-up funding round with the participation of other investors including DST, StepStone, Dragon Fund, Lightspeed, and Epiq Capital. The firm focused on expanding its network in new markets and reinvesting the capital generated from stores into the business. This investment will help Zepto to scale its network and advance its technologies to compete in the quick commerce sector. The company reported that its valuation saw a 40 percent YoY increase compared to June. This Mumbai-based company competes with other quick commerce startups including Swiggy, Zomato-backed Blinkit, and Swiggy.
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