Zepto Secures $31.25 Million at Consistent Valuation, Continuing Rapid Growth

Zepto, a quick commerce unicorn, has successfully raised $31.25 million in its recent funding round, maintaining the same valuation as its previous round in August. The round included investments from existing backers such as Goodwater Capital and Nexus Venture Partners. Angel investors like Oliver and Lish Jung, along with Mangum II LLC, also participated in this funding event. This development marks a continuation of the company’s strong valuation since its last funding round when it secured $200 million at a $1.4 billion valuation. In August, Zepto made history as the first unicorn to emerge in India that year, with investments from StepStone Group, Goodwater Capital, Nexus Venture Partners, Glade Brook Capital, and others.

Financial data for Zepto in October revealed remarkable revenue growth, surging over 14 times to reach Rs 2,024 crore for the fiscal year ending in March 2023, compared to Rs 142.4 crore the previous year. However, despite this revenue growth, the company reported a loss of Rs 1,272 crore in FY23, more than triple the loss of Rs 390.4 crore from the previous year.

The company aims to achieve “Ebitda breakeven (excluding ESOP and other statutory non-cash line items) in 10 months while continuing to grow the business significantly.” Looking forward, Zepto’s co-founder and CEO Aadit Palicha expressed expectations of meaningful business expansion in FY24, targeting more than a two-fold increase in growth.

During a recent panel discussion at The Economic Times Startup Awards, Palicha shared Zepto’s ambition to surpass Rs 10,000 crore in overall sales in the coming months. In the quick commerce segment, Zepto faces competition from players like Swigsy Instamart, Zomato-owned Blinkit, and BigBasket’s BBNow. Zomato reported that Blinkit had achieved its first-ever positive contribution margin of 1.3% as a percentage of its gross order value (GOV) in the shareholder letter for the quarter ending in September.

That’s amazing news! Zepto is making waves in the quick commerce industry. They have recently secured an impressive $31.25 million in funding, maintaining their valuation. Sending my best wishes to the Zepto team! 

~ Dr Shishir Gupta founder & CEO of StartupLanes 

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