Zepto Likely To Double Valuation To $3 Bn With New Fundraise

SUMMARY

Zepto has initiated discussions with a clutch of global investors to raise close to $300 Mn

With eyes on profitability and scalability, it is aiming for EBITDA positive by September this year

In a bid to bolster profitability, quick commerce startup Zepto has started rolling out a platform fee of INR 2 per order for its users.

Quick commerce unicorn Zepto has initiated discussions with a clutch of global investors to raise close to $300 Mn at a valuation range of $2.5-$3 Bn.

With eyes on profitability and scalability, the Mumbai-based company is aiming for EBITDA positive by September this year, ET reported.

Zepto was last valued at $1.4 Bn when it raised $200 Mn in its Series E funding round in August 2023. It also claimed the status of being the first unicorn of 2023 and ending the 11-month unicorn drought then.

Inc42 has reached out to Zepto for a statement on the development. The story will be updated based on the response.

Zepto’s net loss more than tripled year-on-year to INR 1,272.4 Cr in FY23, while its revenue from operations jumped 14.3X to INR 2,024.3 Cr. After embracing the reverse flip strategy, the company is planning to get listed by 2026, after meeting its EBITDA profitability targets in 2024.

It is currently experimenting with a membership programme – Zepto Pass. With Zepto Pass, the quick-commerce unicorn has adopted the playbook of startups like Swiggy Instamart, which also offers loyalty programmes. For instance, the Swiggy One programme provides membership benefits to its Instamart users along with food delivery.

Further, in a bid to bolster profitability, quick commerce startup Zepto has started rolling out a platform fee of INR 2 per order for its users. This is on top of separate handling charges that it levies on orders, which range anywhere between INR 5 to INR 20 depending on the order size, location and time of the day. Additionally, Zepto also charges a surge fee and a separate “cart fee” for orders below INR 100.

Apart from Swiggy, Zepto competes against Zomato-acquired Blinkit. Another rival, Reliance-backed Dunzo has already lent into financial stress and is currently in talks with Flipkart for a possible acquisition. This development comes at a time when the Walmart-owned ecommerce giant is also planning to launch 10-15 minute delivery services in at least a dozen cities in the next two months.