Zepto Raises $650 Million Funding at $3.5 Billion Valuation, Boosts Growth Plans

In a significant move within the quick grocery delivery sector, Zepto is reportedly on the verge of securing a substantial $650 million in funding from a mix of existing and new investors. This strategic financial infusion is set to propel the company’s valuation to an impressive $3.5 billion, placing it in direct competition with its closest rival, Blinkit.

Sources close to the matter have indicated that Nexus, alongside its limited partner StepStone, is expected to spearhead this new round of investment. While Zepto has remained tight-lipped regarding the development, this marks the company’s second major fundraising endeavor within a span of roughly twelve months.

Previously, in August of the preceding year, Zepto successfully raised $200 million, courtesy of investors including StepStone Group and Goodwater Capital, among others. This funding round was pivotal, not only for Zepto but also for the Indian startup ecosystem, as it concluded a period devoid of unicorn status achievements. The round witnessed the introduction of new investors, with StepStone Group at the helm and Goodwater Capital making its debut investment.

Founded in the mid-2021, Zepto has articulated its intentions to transition into a publicly-listed entity in the foreseeable future. The company has demonstrated a remarkable revenue surge of 1,339% year-over-year in FY23. Despite this exponential growth, the fiscal period also saw a tripling of losses, escalating from Rs 390 crore in FY22 to Rs 1,272 crore.

The quick commerce domain is witnessing a heated rivalry among three major players: Zomato’s Blinkit, Swiggy’s Instamart, and Zepto. With its ambitious plans to go public within the next two to three years, Zepto is gearing up to solidify its standing in this competitive market.

Zepto’s upcoming funding round is a testament to the dynamic nature of the quick delivery industry and the company’s aggressive growth strategy. As it gears up for a public listing, the industry eagerly anticipates the impact of this new capital on Zepto’s market position and its ongoing battle with industry titans.