Quick commerce start-up Zepto raises $340 million at $5 billion valuation

Zepto's existing investors, including StepStone, Lightspeed, DST, and Contrary, also increased their stakes, reports said.

With this new funding, the quick commerce unicorn’s valuation has surged by nearly 40 percent, increasing to $5 billion from $3.6 billion in June, when it raised $665 million in its Series F round.

The company has raised over $1 billion in 2024, $1.2 billion in the past 12 months, and more than $1.5 billion since its inception, reports Entrackr.

According to reports, Zepto is planning to double its dark stores to 700 by March next year and expand into new markets such as Nasik, Chandigarh, Vizag, and Ahmedabad, while the company will also increase its presence in existing metro cities.

Zepto's co-founder and CEO Aadit Palicha said, “The rationale behind this follow-on financing was twofold.”

“First, the opportunity to bring on a lead investor of Neeraj Arora’s caliber from General Catalyst was one we couldn’t pass up. Second, strengthening our balance sheet is a strategic move, especially as the company continues to deliver robust growth and operating leverage,” Palicha added.

Zepto, which serves millions of customers by delivering over 10,000 products across various categories within 10 minutes through a network of delivery hubs nationwide, claims it has nearly achieved EBITDA (earnings before interest, taxes, depreciation, and amortization) positivity with 140 percent year-on-year (YoY) growth and an annualized gross merchandise value of over $1 billion (Rs 8,300 crore).

As of May 2024, Zepto also reports that about 75 percent of its stores are fully EBITDA positive.

Zepto, in FY23, registered a 14-fold rise in revenue to Rs 2,024 crore, though its losses widened to Rs 1,272 crore.