Zepto raises $350 Mn, surpasses $1.35 Bn in funding for 2024

Quick commerce company Zepto has raised $350 million in a funding round led by Motilal Oswal Private Wealth, with participation from notable investors, including Raamdeo Agarwal, the Taparia Family Office, Mankind Pharma Family Office, RP Sanjiv Goenka Group, Cello Family Office, Haldiram Snacks Family Office, Sekhsaria Family Office, Kalyan Family Office, Happy Forgings Family Office, and Mothers Recipe Family Office (Desai Brothers).

Celebrity investors such as Sachin Tendulkar and Abhishek Bachchan also participated in this round.

With this, Zepto has raised a total of $1.35 billion in 2024 and $1.85 billion since its inception. In August, it secured $340 million in funding at a $5 billion valuation. However, the latest round did not result in any change to its valuation.

Zepto serves millions of customers by delivering over 25,000 products across various categories within 10 minutes through its nationwide network of delivery hubs. The company claims to operate over 550 dark stores and processes more than 700,000 daily orders.

According to a recent report by Motilal Oswal, Blinkit leads the quick commerce market with a 46% share, followed by Zepto in second place with a 29% share. Swiggy Instamart ranks third, holding a 25% market share.

The Mumbai-based company claims to have nearly achieved EBITDA positivity, recording 140% year-on-year growth and an annualized gross merchandise value (GMV) exceeding $1 billion (Rs 8,300 crore). As of May 2024, it reports that approximately 75% of its stores are fully EBITDA positive.

While the firm has yet to file its annual report for FY24, it reported a 14-fold increase in revenue to Rs 2,024 crore in FY23, though its losses widened to Rs 1,272 crore. It has projected surpassing Rs 5,000 crore in sales for FY24.

Zepto founder Aadit Palicha has also indicated plans for an initial public offering (IPO) by the end of 2025 or early 2026. Additionally, the company is in the process of shifting its domicile from Singapore to India to facilitate the listing process.