Zepto raises $665 million to double store count, eyes IPO in next 9-12 months

Zepto has raised $665 million (₹5,560 crore) ahead of the initial public (IPO) offering planned next year, the quick commerce company announced on Friday, June 21.

The amount has been raised at a valuation of $3.6 billion, Zepto said. This is higher as compared to the valuation of $1.4 billion at which it raised $235 million in August 2023.

The fresh funding round was co-led by Glade Brook, Nexus, and StepStone, who are existing investors in the Mumbai-based startup. Goodwater and Lachy Groom also increased their investment in the company, whereas, Avenir, Lightspeed, and Avra are among the new investors.

Doubling store count

Zepto plans to double its store count from 350 to 700 by next year, the company's chief executive officer and co-founder Aadit Palicha told reporters.

The stores that Zepto operates are dark stores, which are not open to the public. They serve as inventories from where online deliveries are dispatched.

The company plans to enter 10 new markets, including cities like Ahmedabad, Jaipur and Chandigarh, while doubling down on its existing markets in the metro cities of Mumbai, Delhi and Bengaluru.

IPO next year

As per the last financial results declared for the year ended March 31, 2023, Zepto's revenue had jumped 14 times to ₹2,024 crore. However, its losses had widened to ₹1,272 crore from ₹390 crore in FY22.

According to Zepto, 75% of its dark stores turned EBITDA positive by May 2024.