Zepto Secures $31.25M Investment from Goodwater Capital and Nexus Venture Partners

• ByStartupStory     |    November 8, 2023

Zepto, the rapidly emerging quick commerce platform, has successfully secured an additional $31.25 million in its latest funding round from prominent investors, including Goodwater Capital, Nexus Venture Partners, and angel investors Oliver and Lish Jung, and Mangum II. This investment, as reported by DealStreetAsia, has been confirmed by Zepto to YourStory. This substantial funding follows closely on the heels of Zepto’s earlier $200 million investment round, led by StepStone Group, Goodwater Capital, Nexus Venture Partners, and Glade Brook Capital, which valued the Mumbai-based company at an impressive $1.4 billion. This valuation secured Zepto’s status as the first unicorn of 2023.

Co-founded by Aadit Palicha and Kaivalya Vohra, Zepto has ambitious plans for this latest funding. It intends to further solidify its presence in India’s top seven cities, including Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, Pune, and select areas of Kolkata. The exclusive financial advisor for this deal was Avendus Capital. In terms of financial performance, Zepto has reported substantial revenue growth, with figures surging to Rs 2,024 crore in FY23, a notable increase from Rs 142.4 crore in the previous fiscal year. However, the company also reported an increase in losses, rising to Rs 1,272 crore in FY23, compared to Rs 390.4 crore in FY22.

Aadit Palicha, Co-founder and CEO of Zepto, has not disclosed specific details about the amount the company aims to raise through its planned initial public offering (IPO) in early 2025. However, he did mention in August that the $200 million capital raised in the recent funding round serves as a pre-IPO financing phase, which he referred to as a “capital-building exercise.” Palicha emphasized that the capital injection would be directed towards investments in stores over the next 1-3 months, with a focus on generating returns over the following 9-12 months to advance the company’s journey towards profitability.

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