Funding · Commerce & Consumer Brands

Zepto raises $665m at $3.6b valuation

By Startup Enthusiast · 21 June 2024

What they do

Zepto delivers groceries and essentials in minutes across Indian cities

It raised $665m in Series F funding co-led by new investors Avenir, Lightspeed, and Avra Capital, valuing it at $3.6b

The company plans to double its store count to 700 and claims 75% of stores are EBITDA positive

Zepto raised $665 million in a Series F funding round.
The round valued the company at $3.6 billion post-money.
New investors Avenir, Lightspeed, and Avra Capital participated.
Existing investors Glade Brook, Nexus, and StepStone co-led the round.
Other existing investors Goodwater and Lachy Groom also doubled down.
Avra Capital is a new fund started by Anu Hariharan, former MD of Y Combinator Continuity.
Zepto is Avra Capital's first global investment.

Indian quick commerce operators claim their model is sustainable, unlike in the West.
Zepto's valuation jumped from $1.4 billion in its last round to $3.6 billion now.
The company achieved unicorn status in August 2023 after its Series E round.
Competitors BlinkIt and Swiggy Instamart are also expanding rapidly.
Flipkart raised $350 million from Google, partly to enter quick commerce.

Zepto is a Mumbai-based quick commerce company delivering groceries and essentials.
It operates 350 stores and plans to scale to 700 stores.
The company's annualized gross merchandise value (GMV) is over $1 billion.
It reported 140% year-on-year growth.
As of May 2024, 75% of its stores are EBITDA positive (profitable before interest, taxes, depreciation, and amortization).
In FY23, Zepto's revenue was Rs 2,024 crore, a 14-fold jump from FY22.
Its FY23 loss was Rs 1,272 crore, up from Rs 390 crore in FY22.

Avenir (new investor)
Lightspeed (new investor)
Avra Capital (new investor) — Fund started by Anu Hariharan, former MD of Y Combinator Continuity
Glade Brook (co-lead)
Nexus (co-lead)
StepStone (co-lead)
Goodwater (existing investor)
Lachy Groom (existing investor)

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.