Zepto, the rapidly growing quick commerce company, has successfully raised $350 million in its latest funding round, bringing its total capital raised in 2024 to an impressive $1.35 billion. This round was led by Motilal Oswal Private Wealth and saw participation from a diverse group of notable investors, including family offices from Mankind Pharma, Haldiram Snacks, and several others. To be able to share investment from celebrity investors such as cricket legend Sachin Tendulkar and actor Abhishek Bachchan, the company’s appeal continues to come into light.
PC: Business Standard
Funding Highlights and Valuation
This is following a recent funding infusion, where Zepto raised $340 million in August at a valuation of $5 billion. But the valuation of the company remained unchanged. So far, from its foundation, Zepto has amassed $1.85 billion to date and it sits as one of the most significant players in the quickly growing quick commerce market. The company will probably utilize the funds for improving the infrastructure of the firm, extending the products it caters to the market, and increasing market shares.
Lightning Commerce Operations
Zepto has established a reputation as having delivered more than 25,000 products in a variety of categories within an impressive 10-minute window with its network of delivery hubs spread all over the country. It runs over 550 dark stores and processes more than 700,000 orders every day, further establishing its robust logistics capabilities. As per a recent report by Motilal Oswal, currently, Zepto holds 29% market share in the quick-commerce sector and is poised as the second-largest player subsequent to Blinkit, which leads in its own right with 46% share. Swiggy Instamart ranked third with 25% market share.
Financial Performance and Growth
Zepto has also recorded impressive growth metrics. It has reached an annualized gross merchandise value exceeding $1 billion (approximately ₹8,300 crore), with even a staggering 140% growth year on year. The company claims that around 75% of its stores are now fully EBITDA positive-while their business is trending towards operational profitability.
It has yet to publish its FY24 annual report. However, it did report a 14-fold increase in revenues to ₹2,024 crore for FY23 along with increased losses at ₹1,272 crore. Zepto has projected its sales to be more than ₹5,000 crore in the current fiscal year. The aggressive strategy for growth has underlined its future prospects.
Future Plans and IPO Prospects
Zepto’s founder, Aadit Palicha, seems to hint at an IPO by the end of 2025 or early 2026. This is in line with a more holistic approach to ensure that the company ingrains itself more deeply in the market while being on the growth curve. It also plans to relocate its domicile from Singapore to India. This should also help ease the process of an IPO and enhance its appeal to domestic investors.
Zepto’s strong funding success and rapid growth indicate the upsurging need for quick commerce services in India. Moving forward, as the company innovates and expands its service offering, it is geared to fiercely compete within a fast-changing market landscape. With broad support from leading investors and clear visions for future growth, Zepto is poised to revolutionize the quick commerce experience for the consumer across the country. As it gets closer to the potential IPO and further cements itself in the markets, much will be put to the test through how Zepto sinks its teeth into burgeoning quick commerce opportunities.
