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Zepto Secures Mammoth $665 Million Funding Round in Series F

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Preeti Bali / 10:17 am / June 24, 2024

Zepto, a main speedy business organization situated in Mumbai, has gotten a faltering $665 million in its Series F subsidizing round. This significant speculation round was co-driven by existing financial backers Knoll Creek, Nexus, and StepStone, with investment from new players including Avenir, Lightspeed, and Avra (Anu Hariharan’s as of late sent off reserve). Eminently, existing financial backers Goodwater and Lachy Man of the hour likewise expanded their stakes in the organization.

This financing round denotes a huge achievement for Zepto, pushing them into unicorn region (valuation surpassing $1 billion) following their $200 million Series E round in August 2023. The new capital implantation values Zepto at a post-cash valuation of $3.6 billion, a significant increment from the $1.4 billion valuation accomplished in the past round. Until this point in time, Zepto has effectively brought more than $1.2 billion up in financing.

Financial Strength Fuels Competitive Advantage

This critical subsidizing round enables Zepto to additionally cement its situation inside the Indian speedy business market, where it faces contest from all around supported rivals like BlinkIt and Swiggy Instamart. Outstandingly, Zepto stresses an interesting benefit contrasted with Western speedy trade organizations – an emphasis on accomplishing a maintainable monetary model.

The organization flaunts noteworthy monetary measurements, guaranteeing close to EBITDA inspiration close by a vigorous 140% year-on-year development rate. Zepto’s annualized gross product esteem (GMV) has outperformed $1 billion, with roughly 75% of its stores accomplishing full EBITDA inspiration as of May 2024.

“We are focused on keeping up with monetary discipline as we scale our activities,” expressed Adit Palicha, Zepto’s prime supporter and President. “The capital created from our developed stores will be reinvested once again into the business, working with our extension from 350 stores to 700 stores.”

Financial Performance and Strategic Expansion

While Zepto’s revenue for FY23 witnessed a substantial 14-fold jump to Rs 2,024 crore, the company’s losses also widened to Rs 1,272 crore, compared to Rs 390 crore in the previous fiscal year.

This funding round also marks the official launch of Avra Capital, a growth equity fund established by Anu Hariharan, former MD of Y Combinator Continuity. Notably, Zepto serves as Avra Capital’s inaugural investment globally.

The Indian quick commerce landscape is poised for further disruption with the upcoming entry of Walmart-owned Flipkart. Entrackr exclusively reported this development in March, highlighting Flipkart’s $350 million funding round secured from Google. Media sources suggest that a significant portion of these funds will be allocated towards Flipkart’s foray into the quick commerce space. With Zepto’s substantial funding and established market presence, the race for dominance in India’s quick commerce market is set to intensify.

 

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