Zepto is among India’s fastest grocery delivery platforms. It helps in the delivery of basic grocery items to your doorstep in the shortest possible time. With its increasing number of dark stores, the company is successfully able to do so. To manage its further expansion, the company takes funding of around $665 million. It is also ready for its IPO next year. Zepto’s growth is commendable. How the company doubled its valuation in such a short duration. Let us find out below.
Zepto Raises $665 Million Funding, Valuation Doubles To $3.6 Billion
Zepto is an online grocery delivery app. People use it to order their day-to-day basic needs. The company became a unicorn nine months ago and is going to list its IPO soon. Apart from that, it managed to get funding of $665 million recently. This investment will help the company accomplish its goals for further expansion. This funding has several new and old investors.
Following is the list of the new investors that contributed to Zepto’s recent funding:
- Avenir
- Avra Capital
- Lightspeed
While the existing investors present in the fundraising round:
- Nexus Venture Partners
- Glade Brook
- StepStone Group
Zepto growth takes place at a faster speed than expected. Everyone gets to know about the company more after Y Combinator invests in the company. While Avra Capital is among the new investors in the company. It’s their first investment and belongs to Anu Hariharan, co-founder and former managing director of Y Combinator. Zepto’s recent funding doubled its valuation to $3.6 Billion. Before this funding, Zepto was at a valuation of $1.4 Billion.
Zepto and other quick commerce companies are rapidly growing. The growth is unmatchable to any other company. It started in 2021. It has only been three years for the company. Another big quick commerce firm Blinkit is also having an increase in customer demand. Zepto will announce its IPO next year. The company will utilise its current funding in different areas for its growth. Zepto’s main aim is to increase its dark stores. The company has currently 350 stores as of 2024.
Among these 350 dark stores, 75% of its dark stores are having EBITDA positive. The stress is becoming profitable in a much shorter duration. Earlier, the dark stores took 23 months to turn profitable. However, it is currently able to turn profitable in 6 months. The company aims to double its dark stores to 700 by March 2025. Aadit Palicha, co-founder and CEP of Zepto is focusing on increasing their number of dark stores to manage faster delivery in the country.