Amidst the intensifying competition within the quick commerce sector, Zepto, a leading player in the space, is gearing up to raise a staggering $650 Mn from both existing and new investors. The funding round, spearheaded by prominent backers like Nexus Venture Partners and StepStone Group, is poised to catapult Zepto’s valuation to an impressive $3.5 Bn, a substantial leap from its previous valuation of $1.4 Bn, as reported by Moneycontrol.
Investor Lineup
Nexus Venture Partners and StepStone Group are set to lead the funding round, marking Nexus’ most significant investment to date. The investment landscape further expands with Glade Brook Capital joining as an existing investor and new players Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra coming on board, as per reports.
Varied Reports on Funding Size
Initial reports hinted at a funding round of approximately $300 Mn led by DST Global and Lightspeed Venture Partners. However, subsequent developments suggest a more substantial infusion of $650 Mn, underscoring investor confidence in Zepto’s growth trajectory and market potential.
Zepto’s Financial Performance and Growth Trajectory
Founded in 2021 by Aadit Palicha and Kaivalya Vohora, Zepto has witnessed exponential growth driven by the burgeoning demand for rapid 10-minute deliveries. The startup’s revenue skyrocketed by a staggering 14.3X, reaching INR 2,024.3 Cr in FY23, while net losses surged 3.35X year-on-year to INR 1,272.4 Cr during the same period. Despite these challenges, Zepto remains optimistic about achieving EBITDA positivity, a testament to its robust business model and growth prospects.
Strategic Moves and Market Dynamics
Earlier this year, reports surfaced indicating Zepto’s plans for a reverse flip to India, aiming to emerge as a publicly listed entity by 2026. In the fiercely competitive quick commerce landscape, Zepto faces stiff competition from industry heavyweights such as Zomato’s Blinkit, Swiggy’s Instamart, and Tata-backed BigBasket Now, among others. The impending entry of giants like Flipkart and Reliance’s JioMart further underscores the dynamic nature of the sector, heralding a new era of competition and innovation.
