The Zepto logo.
Credit: Reuters Photo
New Delhi: Quick commerce company Zepto on Friday said it has raised $665 million (about Rs 5,560 crore) in the latest funding round that valued the firm at $3.6 billion, almost triple than its worth a year back.
The massive fundraise comes less than a year after the Mumbai-based startup raised $235 million at a valuation of $1.4 billion.
The funding round saw participation from new investors like Avenir, Lightspeed, and Avra, alongside existing investors Glade Brook, Nexus, and StepStone, Goodwater, and Lachy Groom.
"We've gone from 0 to 1 billion-plus in sales, or GMV, in 29 months, that is faster than any other internet company before us... Even on a base of over a billion dollars at this point, we are growing 100 per cent-plus year on year. And that for us is one of the big drivers of this fundraise," Zepto co-founder and CEO Aadit Palicha told PTI.
Attributing the growth to the performance of the quick commerce firm, the young entrepreneur said, "This is largely because of the input excellence we've built across the supply chain.
"Whether it is sourcing excellence, mother hub efficiency, line haul utilisation, or our last mile, the innovation that we've done, or forecasting, we're in this place where even as we've been able to grow, we've been able to drive efficiency to get the business to pretty much close to full operating cash flow positive today." He said the overall business is close to operating at break-even cash flow.
Nearly 75 per cent of the company's stores are fully EBITDA positive as of May 2024, he said.
"Over the next 12-18 months, although it might fluctuate, but we'll still be pretty close to operating cash flow positive, and the idea is to keep in that direction, get the business to a place where we can list next 9-12 months," he said.
Zepto co-founder and CTO Kaivalya Vohra said the firm plans to hire top talent across engineering, product, growth, finance, operations, and category management.
"If you are looking for a high growth, high meritocracy and high intensity culture where you can convert hard work and ambition into disproportionate career growth, Zepto is the place for you," he said.