Zepto Achieves $3.6 Billion Valuation with $665 Million Fundraise, Prepares for IPO
- ByStartupStory | June 21, 2024
Zepto, one of India’s fastest-growing consumer internet companies, has successfully raised $665 million in a fresh funding round, elevating its valuation to an impressive $3.6 billion. The funding round saw participation from new investors Avenir, Lightspeed, and Avra—Anu Hariharan’s new fund—alongside existing investors Glade Brook, Nexus, and StepStone. Additional contributions came from Goodwater and Lachy Groom.
Founded in 2021, Zepto, a quick commerce company, secured this latest round of funding following its $235 million raise in August 2023. This previous round had propelled Zepto to unicorn status with a valuation of $1.4 billion.
The company’s business performance has been remarkable, with its Gross Merchandise Value (GMV) multiplying year-on-year to over $1 billion. Approximately 75% of Zepto’s stores have achieved full EBITDA positivity as of May 2024. Stores that previously took 23 months to become profitable now achieve profitability in just six months.
Commenting on the company’s rapid growth, co-founder and CEO Aadit Palicha said, “This dynamics of stores turning profitable faster and 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 are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon.”
Co-founder and CTO Kaivalya Vohra highlighted the company’s future plans, stating, “The most exciting part about this next phase of Zepto’s journey are 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. Hariharan expressed excitement about this milestone, saying, “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.”
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