June 21st 2024.
Zepto, a quick commerce company based in Mumbai, has announced that it has successfully raised $665 million in its latest funding round. This has increased the company's value to $3.6 billion, almost triple its worth from just a year ago.
Just last year, Zepto raised $235 million at a valuation of $1.4 billion. The recent funding round saw the participation of new investors such as Avenir, Lightspeed, and Avra, as well as existing investors Glade Brook, Nexus, and StepStone, Goodwater, and Lachy Groom.
In an interview with PTI, Zepto's co-founder and CEO Aadit Palicha shared the company's astonishing growth. "We've achieved over $1 billion in sales or GMV in just 29 months, faster than any other internet company before us. Even with a base of over a billion dollars, we continue to grow at a rate of 100% year on year. This is one of the main reasons for this successful fundraise," he said.
Palicha attributed this impressive growth to the company's focus on excellence in all aspects of its supply chain. "Our sourcing excellence, efficient mother hubs, line haul utilization, last mile delivery, and innovative forecasting techniques have all contributed to our success. We have been able to drive efficiency while expanding, and currently, we are almost at full operating cash flow positivity," he explained.
He further added that Zepto is close to operating at a break-even cash flow and that 75% of its stores are already EBITDA positive as of May 2024. "In the next 12-18 months, we may experience some fluctuations, but we will continue to be close to operating cash flow positive. Our ultimate goal is to list the company in the next 9-12 months," he stated.
Zepto's co-founder and CTO Kaivalya Vohra also shared the company's plans to hire top talent across various fields such as engineering, product, growth, finance, operations, and category management. "If you are looking for a high-growth, meritocratic, and intense work culture where your hard work and ambition can lead to exceptional career growth, then Zepto is the perfect place for you," he encouraged.
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