Zepto Looking To Raise $650 Mn Funding At A Valuation Of $3.5 Bn

SUMMARY

The funding round will be led by existing backer Nexus Venture Partners and its limited partner StepStone Group

The round will also see participation from existing investor Glade Brook Capital and new investors Avenir Growth, Lightspeed Venture Partners, DST Global and Avra

Zepto last raised $31.25 Mn in its Series E round in November 2023 from Goodwater Capital and Nexus Venture Partners, increasing the round’s size to $231.5 Mn

Amid the rising competition in the quick commerce space, Zepto is looking to raise $650 Mn from new and existing investors.

The funding round, which will be led by existing backer Nexus Venture Partners and its limited partner StepStone Group, will bump up the startup’s valuation to $3.5 Bn from its last valuation of $1.4 Bn, Moneycontrol reported.

The investment will make it Nexus’ largest investment till date. The round will also see participation from existing investor Glade Brook Capital and new investors Avenir Growth, Lightspeed Venture Partners, DST Global and Avra, the report said.

This came a day after another report said that DST Global and Lightspeed Venture Partners will invest in Zepto’s funding round. However, it pegged the round’s size at around $300 Mn.

Meanwhile, Inc42’s queries on the developments didn’t elicit any response from Zepto till the time of publishing this story. The article would be updated on receiving a response from the startup.

Zepto last raised $31.25 Mn in its Series E round from Goodwater Capital and Nexus Venture Partners, increasing the round’s size to $231.5 Mn. The funding round, which turned the startup into a unicorn, also saw participation from StepStone, Nexus, Lachy Groom, among others.

Founded in 2021 by Aadit Palicha and Kaivalya Vohora, Zepto has grown rapidly on the back of increasing demand for quick 10-minute deliveries. The startup’s revenue surged 14.3X to INR 2,024.3 Cr in FY23 from INR 140.7 Cr in the previous fiscal year. Net loss grew 3.35X year-on-year to INR 1,272.4 Cr in FY23.

While Zepto has not yet announced its FY24 numbers yet, the company in the past has claimed to be on track to become EBITDA positive.

Earlier this year, Inc42 reported that Zepto is looking to reverse flip to India with an eye on becoming a publicly listed company by 2026.

In the fledgling quick commerce space, Zepto competes with the likes of Zomato’s Blinkit, Swiggy’s Instamart, Tata-backed BigBasket Now, among others.

Meanwhile, the competition in the space is expected to increase further as Flipkart and Reliance’s JioMart are all set to foray into the segment. Earlier this week, it was also reported that Zomato is looking to infuse INR 300 Cr in Blinkit.