Zepto gets $665m funding at $3.6b valuation, nears EBITDA profitability

(From left) Zepto founders Kaivalya Vohra and Aadit Palicha / Photo credit: Zepto

Zepto, an instant grocery delivery firm based in India, has put US$665 million into its cart. The round saw participation from new investors like Avra Capital, Lightspeed, and Avenir, as well as existing ones like Glade Brook, Nexus, and StepStone.

This brought Zepto’s valuation to US$3.6 billion, the company said in a statement. Just nine months earlier, it raised US$235 million at a US$1.4 billion valuation.

As of May 2024, the firm reported a gross merchandise value of over US$1 billion, with nearly 75% of its stores being EBITDA profitable. Instead of 23 months, its stores now become profitable in six months on average.

According to Zepto CEO and co-founder Aadit Palicha, this progress in profitability has spurred the company’s growth, with plans to expand from 350 to 700 stores by March 2025.

CTO Kaivalya Vohra also said the company plans to branch into new areas, grow existing programs, and hire more staff. This covers “major new projects” that will boost customer experience by 10x, such as launching new categories and expanding initiatives like Zepto Pass, the firm’s subscription service.

In April, The Economic Times reported that Zepto failed to strike a deal on a sale to Flipkart as both parties could not agree on the latter’s request to gain controlling interest.

Zepto became India’s first unicorn of 2023 after securing the first part of its series E round in August.

See also: Beauty ecommerce in India gets speedy makeover via quick commerce