Zepto Reports GMV(gross merchandise value) Surpassing $1 Billion, 75% of Stores Achieve Positive EBITDA as of May 2024.
Zepto, a quick commerce startup, has successfully raised $665 million, now valuing the company at $3.6 billion. This comes just nine months after its previous funding round of $235 million, which valued the company at $1.4 billion. The latest investment round saw participation from new investors such as Avenir, Lightspeed, and Avra (a fund led by Anu Hariharan, former MD of Y Combinator Continuity), as well as existing investors Glade Brook, Nexus, and StepStone, among others.
This infusion of capital arrives as Zepto gears up to face heightened competition in the quick commerce arena, particularly with reports of e-commerce giant Flipkart’s imminent entry into the fray.
Zepto reports substantial growth, with its gross merchandise value (GMV) surpassing $1 billion. Impressively, around 75% of its stores are now fully EBITDA positive, a significant improvement from previous metrics. The company notes a remarkable reduction in the time taken for stores to become profitable, from 23 months to just six months.
Aadit Palicha, Co-founder & CEO of Zepto, attributes this accelerated profitability to the company’s disciplined approach. With plans to double its store count from 350 to 700, Zepto aims to reinvest profits from mature stores back into the business, potentially paving the way for an eventual public offering.
Innovation remains a focal point for Zepto, particularly in enhancing customer experience through its 10-minute delivery service spanning various product categories. Kaivalya Vohra, Co-founder & CTO, highlights the company’s intention to introduce new product categories and expand its membership program, Zepto Pass.
To support its ambitious growth plans, Zepto intends to recruit top talent across various domains, including engineering, product development, growth, finance, operations, and category management.
The competitive landscape of quick commerce continues to evolve, with Zepto making significant strides. According to a report by HSBC Global Research, Zepto’s market share has risen to 28% as of January 2024. This growth contrasts with declines seen by competitors like Swiggy Instamart, indicating Zepto’s increasing dominance in the market.
The latest funding round also marks the official launch of Avra Capital, which underscores Zepto’s global appeal and transformative impact on Indian e-commerce. Anu Hariharan expresses excitement about partnering with Zepto once again, emphasizing the company’s role in revolutionizing local commerce while maintaining affordability and convenience.
