Zepto, one of India’s fastest-growing consumer internet companies, has raised $665 million in a fresh funding round, bringing its valuation to $3.6 billion. New investors, including Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund), have joined the company’s cap table. Existing investors Glade Brook, Nexus, and StepStone also participated in the round with additional contributions from Goodwater and Lachy Groom.
Founded in 2021, this quick commerce company secured this latest funding round after raising $235 million in August 2023, when it achieved unicorn status with a valuation of $1.4 billion.
According to the release, in terms of business performance, Zepto’s GMV has multiplied year-on-year to a base of over $1 billion+, and ~75% of the company’s stores are fully EBITDA positive as of May 2024., these stores previously took 23 months to achieve profitability; today, they only take six months. Commenting on the company’s trajectory, co-founder & CEO, Aadit Palicha, said, “This dynamics of stores turning profitable faster and faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level. We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business. If we are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon.”
Co-founder & CTO, Kaivalya Vohra, added, “The most exciting part about this next phase of Zepto’s journey are the major new projects that will 10X customer experience, from launching new categories to expanding initiatives like Zepto Pass. To build out this roadmap, we plan to hire top talent across engineering, product, growth, finance, operations, and category management. If you are looking for a high growth, high meritocracy and high intensity culture where you can convert hard work and ambition into disproportionate career growth, Zepto is the place for you.”
This funding round also marks the formal launch of Avra Capital, a growth equity fund founded by Anu Hariharan, the former Managing Director of Y Combinator Continuity.
Zepto is Avra Capital's first global investment. Commenting on this milestone, Hariharan said, "we are thrilled to partner with Zepto once more, this time through Avra, marking our first global investment. Zepto may appear to be a mere 10-minute quick commerce company at first glance, but they are transforming Indian e-commerce by creating the 'Hyperlocal Amazon,' combining affordable prices with local convenience."