📷 Image Credits: Moneycontrol
Zepto, the Indian instant grocery delivery app, has recently raised a whopping $665 million in funding at a valuation of $3.6 billion. This significant fundraise marks a milestone for the startup, showcasing investor confidence in the booming quick commerce sector in India.
The round was co-led by existing backers like Glade Brook, Nexus, and StepStone, with new investors like Avenir Growth, Lightspeed, and Avra joining in. Notably, DST Global, a key investor in Swiggy, a rival of Zepto, also participated in the round.
In a statement to Moneycontrol, Zepto founder Aadit Palicha highlighted the company’s impressive growth, with a gross merchandise value (GMV) exceeding $1 billion in sales within 2.5 years. Zepto has achieved over 100% year-on-year growth, along with a positive EBITDA in 75% of its markets.
The funding will fuel Zepto’s expansion plans, including entering new markets like Jaipur, Chandigarh, and Ahmedabad. The company also aims to double its dark store count to over 700 by March 2025, aligning with the growth strategy of other market players.
Palicha emphasized the profitability of non-metro cities like Jaipur and Ahmedabad due to lower operational costs, paving the way for accelerated growth. Zepto’s ad income, currently around Rs 100 crore, is set to further boost GMV, aiming to become a Rs 1,000 crore business within the next year.
With plans to increase its workforce and investments in category expansion, Zepto is set to solidify its position in the quick commerce space. The startup’s focus on hyper-local, high-proximity, and low-ticket use cases has resonated well with Indian consumers, driving its success in the market.
Zepto’s rapid growth and strong investor support signal a promising future for the company, positioning it as a key player in the evolving quick commerce landscape in India.
