As competition in quick commerce space heats up, Zepto is looking to raise $650 million from new and existing investors.
The funding will be led by existing backer Nexus Venture Partners and its limited partner StepStone Group, according to news agency IANS. The round is expected to raise the startup’s valuation to $3.5 billion from a previous valuation of $1.4 billion.
Meanwhile, MoneyControl reports that the two investors plan to make the bulk of the capital investment in the fund, making it Nexus’ largest investment to date. According to sources quoted in the report, the round will also include existing investor Glade Brook Capital, as well as new investors Avenir Growth, Lightspeed Venture Partners, DST Global and Avra.
This follows another report that DST Global and Lightspeed Venture Partners are expected to fund Zepto’s round with the round expected to be around $300 million.
Continue Exploring: DST Global and Lightspeed Venture Partners likely to join Zepto’s financing round, valuing it at about $3 Billion
In its Series E round, Zepto raised $31. 25 million from investors including Goodwater Capital and Nexus Venture Partners, bringing the total of the round to $231. 5 million. This funding, which made the startup a unicorn, also included StepStone, Nexus, Lachy Groom, and others.
Zepto’s Growth Trajectory and Financial Performance
Zepto was founded in 2021 by Aadit Palicha and Kaivalya Vohra and has grown rapidly in response to rising demand for quick 10-minute deliveries. The startup’s revenue increased 14.3 times to INR 2,024.3 crore in FY23, up from INR 140.7 crore the previous fiscal year. In FY23, net loss increased 3.35 times year on year to INR 1,272.4 crore.
Though Zepto is yet to release FY24 figures, the company has previously said it wants to generate positive EBITDA and is committed to this target.
Continue Exploring: Zepto gains ground in quick-commerce market as Instamart slips
Earlier this year, reports suggested that Zepto was considering a move into India with the aim of becoming a publicly listed company by 2026.
In the new quick commerce space, Zepto competes with other players like Blinkit, Swiggy Instamart, BigBasket and others.
Meanwhile, anticipation mounts for heightened competition in the sector with Flipkart and Reliance’s JioMart poised to enter the fray. Additionally, recent reports suggest that Zomato is planning to inject INR 300 crore into Blinkit.
Continue Exploring: Reliance Industries set to disrupt quick commerce market with JioMart’s entry, challenging Blinkit, Zepto, and others
