Zepto raises $665 million at $3.6 billion valuation

This fund raising by Zepto comes just nine months after the company raised $235 million at a $1.4 billion valuation.
Zepto raises $665 million at $3.6 billion valuation

BENGALURU: Quick commerce start-up Zepto has raised $665 million at a $3.6 billion valuation, more than double from its last valuation. The company is also ready to go public soon, and plans to hire top talent across engineering, product, growth, finance, operations, and category management.

Also this fund raising comes at a time when other quick commerce start-ups are investing heavily to expand their reach. Flipkart will soon enter the quick commerce space.

This fund raising by Zepto comes just nine months after the company raised $235 million at a $1.4 billion valuation.

Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund) joined the company’s cap table as new investors, among others. Existing investors Glade Brook, Nexus, and StepStone co-led the round with Goodwater and Lachy Groom doubling down as well, Zepto said.

In terms of business performance, Zepto’s GMV has multiplied y-o-y to a base of $1 billion+, and about 75% of the company’s stores are fully EBITDA positive as of May 2024. Zepto co-founder and CEO, Aadit Palicha, said, “This dynamic of stores turning profitable faster and faster has enabled Zepto to grow rapidly while simultaneously achieving near EBITDA positivity at a company level.

We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business.” Zepto co-founder and CTO, Kaivalya Vohra, said, “The most exciting part about this next phase of Zepto’s journey are the major new projects that will 10X customer experience, from launching new categories to expanding initiatives like Zepto Pass.”

Pine Labs considering to float $1 bn public issue

Fintech unicorn Pine Labs is reportedly considering raising an IPO of $1 billion in India. Both new and secondary shares might be issued by Pine Labs. This IPO would be the biggest by an Indian fintech firm after Paytm that raised $2.5 billion in 2021. As per reports, the firm is seeking a valuation of over $6 billion in an IPO. In 2022, the company had filed confidentially with the US Securities and Exchange Commission for an IPO. But it did not go ahead with the listing plans. It is said the company could also opt to do a pre-IPO fundraising round. It is a merchant commerce omnichannel platform operating across India, Middle East, and Southeast Asia. ENS

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