Indian quick-commerce startup Zepto has raised $665 million in a new funding round, catapulting its valuation to $3.6 billion. Led by existing investor Nexus Venture Partners and new investors including StepStone Group, Claridge Partners, and Nor’easter Ventures, this marks as one of the largest funding rounds in the quick-commerce sector this year.
Zepto plans to utilize the newly raised funds to scale its operations, enhance its technological infrastructure, and expand its market reach. The company aims to solidify its presence in key markets such as Delhi NCR, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, and Chennai. Zepto is also focusing on improving its logistics and delivery systems to maintain its competitive edge in the rapid delivery segment.
Founded in July 2021 by Aadit Palicha and Kaivalya Vohra, Zepto has quickly grown to become a major player in India's quick-commerce industry. The company reported a revenue growth of 1,339% year-on-year in FY23, with total revenues reaching Rs 2,024 crore. However, its losses also increased significantly to Rs 1,272 crore from Rs 390 crore in FY22. Despite the financial losses, the company's rapid revenue growth indicates strong market demand and operational scalability.
Looking ahead, Zepto has announced plans to go public within the next 2-3 years. The company is focused on achieving sustainable growth and profitability, with an emphasis on reducing operational costs and optimizing delivery efficiency. Zepto's leadership believes that competing on price and convenience will be crucial for capturing a larger market share in the quick-commerce industry.
Zepto's ability to attract substantial investment highlights investor confidence in the quick-commerce model and its potential to revolutionize the retail sector in India. The infusion of capital will enable Zepto to continue its aggressive expansion and innovation, setting new benchmarks in the industry.
By focusing on rapid delivery and customer convenience, Zepto aims to become a dominant force in the Indian retail landscape, providing a seamless shopping experience for consumers across major cities.
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