Zepto To Add DST Global, Lightspeed To $300 Mn Series E: Report

Prominent venture capital firms DST Global and Lightspeed Venture Partners are anticipated to invest in Mumbai-based Zepto in its upcoming $300 Mn funding round. 

The quick commerce unicorn is reportedly close to raising the funds at a valuation ranging between $2.5 Bn to $3 Bn. Private equity giant General Atlantic, the Abu Dhabi Investment Authority (ADIA) and other investors are expected to lead the round. 

An ET report claims that Lightspeed’s investment in Zepto will be facilitated through its growth-stage vehicle. “The round began in April and has since attracted significant interest from prominent investors. Financing is nearly finalised, with an official announcement expected imminently,” one source was quoted as saying by the publication.

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

Zepto’s last funding round came in August 2023 when it raised $200 Mn at a valuation of $1.4 Bn, which took the startup into the unicorn club. 

Riding on the quick commerce wave, Zepto’s operating revenue surged over 14X year-on-year to INR 2,024 Cr in FY23. However, the startup’s losses more than tripled its losses year-on-year (YoY) to INR 1,272.4 Cr in the same fiscal year.  

While Zepto has not yet announced its FY24 numbers, the company in the past has claimed to be on track to become EBITDA positive. Just on the basis of revenue, Zepto is likely to be bigger than Blinkit. For context, Zomato-owned Blinkit reported revenue of INR 2,302 crore in FY24, just higher than what Zepto reported in FY23.

In FY24, Zepto shored up its bottom line further with the introduction of platform fees, handling charges, surge fee and a separate “cart fee” for orders below INR 100.  It also unveiled a new membership programme Zepto Pass, starting at INR 99 a month, for select users.

Incidentally, even as Zepto is looking to bank on the funding round for growth, a portion of the funds raised would also go towards fulfilling tax obligations for a potential reverse flip from Singapore to India. The startup is said to be close to redomiciling to India and also has eyes on a public listing by 2026.

The quick commerce space is heating up fast and the likes of Flipkart and JioMart are expected to join Blinkit, Zepto and Swiggy’s Instamart.