Zepto Secures $350 Million in Funding, Surpasses $1.35 Billion in 2024

Quick commerce giant Zepto has raised $350 million in a funding round led by Motilal Oswal Private Wealth. Prominent investors such as Raamdeo Agarwal, Mankind Pharma Family Office, and the Taparia Family Office participated in the round, which was also contributed to by celebrity investors Sachin Tendulkar and Abhishek Bachchan.

This brings Zepto’s total funding to $1.35 billion in 2024 and $1.85 billion since its launch. Despite the fresh capital, the company’s valuation remains steady at $5 billion, following its $340 million funding round in August 2024.

Zepto’s Rapid Growth and Market Position

Zepto continues to transform quick commerce in India, delivering over 25,000 products across various categories within 10 minutes. With a network of 550+ dark stores, the company handles more than 700,000 orders daily.

A recent report by Motilal Oswal places Zepto as the second-largest player in the quick commerce market, with a 29% market share. It trails Blinkit (46%) and is ahead of Swiggy Instamart (25%).

The Mumbai-based company reports nearly EBITDA positivity, achieving 140% YoY growth and an annualized GMV exceeding $1 billion (Rs 8,300 crore). As of May 2024, 75% of its stores are fully EBITDA positive.

Financial Projections and IPO Plans

While Zepto’s FY23 revenue rose 14-fold to Rs 2,024 crore, losses widened to Rs 1,272 crore. The company is confident of surpassing Rs 5,000 crore in sales for FY24 and has plans to go public by late 2025 or early 2026.

As part of its IPO preparation, Zepto is relocating its domicile from Singapore to India, underscoring its commitment to the domestic market.

Zepto founder Aadit Palicha stated, “This funding not only strengthens our position in the quick commerce sector but also brings us closer to achieving our vision of redefining convenience for millions of Indian consumers.”