Zepto has raised $665 million at a $3.6 billion valuation in a highly oversubscribed round – just nine months after the company raised $235 million at a $1.4 billion valuation. The company plans to maintain fiscal discipline as it expands from 350 to 700 stores by 2025 and to reinvesting mature store capital back into the business. If this is achieved while maintaining customer satisfaction, the company is expected to be ready for public listing.
Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund) joined the company’s cap table as new investors, among others. Existing investors Glade Brook, Nexus, and Step Stone co-led the round with Goodwater and Lachy Groom doubling down as well.
Commenting on the company’s trajectory, Co-founder & CEO, Aadit Palicha, said, “This dynamic of stores turning profitable faster and faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level.”Zepto’s GMV has multiplied year-on-year to a base of $1 billion+, and ~75% of the company’s stores are fully EBITDA positive as of May 2024. Moreover, these stores previously took 23 months to achieve profitability; today, they only take six months.