Synopsis: Zepto, a quick commerce company founded in 2021, has raised $665 million in a recent funding round, bringing its valuation to $3.6 billion. This follows a $235 million raise in August 2023, which elevated it to unicorn status with a $1.4 billion valuation. New investors Avenir, Lightspeed, and Avra joined the round, along with existing investors like Glade Brook, Nexus, and StepStone.
Founded in 2021, Zepto raised $235 million in August 2023, reaching unicorn status with a valuation of $1.4 billion, and has now secured another significant funding round.
Zepto, one of India’s fastest-growing consumer internet companies, has raised $665 million in a new funding round, elevating its valuation to $3.6 billion.
New investors, including Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund), have joined the company’s cap table.
Existing investors Glade Brook, Nexus, and StepStone also participated in the round, with additional contributions from Goodwater and Lachy Groom.
Founded in 2021, this quick commerce company secured this latest funding round after raising $235 million in August 2023, when it achieved unicorn status with a valuation of $1.4 billion.
According to the release, Zepto’s GMV has multiplied year-on-year to a base of over $1 billion, with approximately 75% of the company’s stores being fully EBITDA positive as of May 2024.
Previously, these stores took 23 months to achieve profitability; today, they only take six months.
Commenting on the company’s trajectory, co-founder & CEO Aadit Palicha said, “This dynamic of stores turning profitable faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level. We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business. If we achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon.”
Co-founder & CTO Kaivalya Vohra added, “The most exciting part about this next phase of Zepto’s journey is the major new projects that will 10X customer experience, from launching new categories to expanding initiatives like Zepto Pass. To build out this roadmap, we plan to hire top talent across engineering, product, growth, finance, operations, and category management. If you are looking for a high-growth, high-meritocracy, and high-intensity culture where you can convert hard work and ambition into disproportionate career growth, Zepto is the place for you.”
This funding round also marks the formal launch of Avra Capital, a growth equity fund founded by Anu Hariharan, the former Managing Director of Y Combinator Continuity.
Zepto is Avra Capital's first global investment. Commenting on this milestone, Hariharan said, "We are thrilled to partner with Zepto once more, this time through Avra, marking our first global investment. Zepto may appear to be a mere 10-minute quick commerce company at first glance, but they are transforming Indian e-commerce by creating the 'Hyperlocal Amazon,' combining affordable prices with local convenience."
In conclusion, Zepto's remarkable growth trajectory, marked by its recent $665 million funding round and a valuation boost to $3.6 billion, underscores its position as one of India's fastest-growing consumer internet companies.
With a focus on rapid profitability and expansion, Zepto is well on its way to scaling its operations and enhancing customer experience through innovative projects and strategic hires.
The company's success, including its significant backing from prominent investors and the launch of Avra Capital's first global investment, positions it strongly for an impending IPO.
As Zepto continues to transform the e-commerce landscape in India, it exemplifies the potential for high-growth businesses to thrive with a disciplined and customer-centric approach.
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