Zepto grabs $340 million in a Follow-on Funding round
Zepto, a company that makes quick commerce, has raised $340 million in a follow-on financing round that was led by General Catalyst and included new investors Dragon Fund and Epiq Capital. StepStone, Lightspeed, DST, and Contrary, all previous investors, also increased their stakes.
Zepto's valuation has increased by nearly 40% thanks to this new funding, from $3.6 billion in June, when it raised $665 million in its Series F round, to $5 billion today. Since its inception, the company has raised more than $1.5 billion, $1.2 billion in the last year, and more than $1 billion in 2024.
By March 2025, Zepto intends to increase its dark store count to 700 and enter new markets like Nasik, Chandigarh, Vizag, and Ahmedabad.
The organization will likewise build its presence in existing metro urban areas. Through a nationwide network of delivery hubs, Zepto delivers more than 10,000 products from a variety of categories to millions of customers within ten minutes. With 140% year-over-year growth and an annualized gross merchandise value of over $1 billion (Rs.8, 300 crore), the Mumbai-based company claims to have nearly achieved EBITDA positivity. It also reports that approximately 75% of its stores are fully EBITDA positive as of May 2024.
Apart from the significant fundraise, Zepto's losses increased to Rs.1, 272 crore in FY23, despite a 14-fold increase in revenue to Rs.2, 024 crore. With BigBasket's complete shift to rapid delivery and Flipkart's recent entry, the quick commerce industry is becoming increasingly competitive. Additionally, Amazon, the market leader in e-commerce, is anticipated to enter the market early next year.Blinkit, which is owned by Zomato, currently leads the quick commerce market, followed by Swiggy Instamart, Zepto, and BigBasket, which is owned by Tata Digital.
Zepto's valuation has increased by nearly 40% thanks to this new funding, from $3.6 billion in June, when it raised $665 million in its Series F round, to $5 billion today. Since its inception, the company has raised more than $1.5 billion, $1.2 billion in the last year, and more than $1 billion in 2024.
By March 2025, Zepto intends to increase its dark store count to 700 and enter new markets like Nasik, Chandigarh, Vizag, and Ahmedabad.
The organization will likewise build its presence in existing metro urban areas. Through a nationwide network of delivery hubs, Zepto delivers more than 10,000 products from a variety of categories to millions of customers within ten minutes. With 140% year-over-year growth and an annualized gross merchandise value of over $1 billion (Rs.8, 300 crore), the Mumbai-based company claims to have nearly achieved EBITDA positivity. It also reports that approximately 75% of its stores are fully EBITDA positive as of May 2024.
Apart from the significant fundraise, Zepto's losses increased to Rs.1, 272 crore in FY23, despite a 14-fold increase in revenue to Rs.2, 024 crore. With BigBasket's complete shift to rapid delivery and Flipkart's recent entry, the quick commerce industry is becoming increasingly competitive. Additionally, Amazon, the market leader in e-commerce, is anticipated to enter the market early next year.Blinkit, which is owned by Zomato, currently leads the quick commerce market, followed by Swiggy Instamart, Zepto, and BigBasket, which is owned by Tata Digital.
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