India
July 24, 2024
Zepto Secures $650 Million Funding, Valuation Soars to $3.5 Billion
Business World

Zepto Secures $650 Million Funding, Valuation Soars to $3.5 Billion

Jun 13, 2024

Zepto, an instant grocery delivery startup, is set to raise approximately $650 million from a blend of existing and new investors. The funding round, slated to value Zepto at an impressive $3.5 billion, underscores the soaring interest in the burgeoning quick commerce landscape within India.

Existing investors StepStone Group, Nexus Venture Partners, and Glade Brook Capital are poised to participate alongside new investors Avenir Growth, Lightspeed Venture Partners, DST Global, and Avra. This substantial infusion of capital is expected to more than double Zepto’s valuation from $1.4 billion to $3.5 billion, signaling investors’ confidence in the company’s growth trajectory within the quick commerce segment.

Zepto’s strategic positioning as a pure-play quick commerce entity sets it apart from its competitors, including industry giants like Zomato-owned Blinkit, Swiggy Instamart, and Tata’s BigBasket (BB Now). While Zepto faces formidable competition, its focus on rapid expansion backed by a deep pool of capital has garnered attention and investment.

Nexus Venture Partners, along with its limited partner StepStone, is set to lead the funding round, highlighting their significant backing of Zepto and their confidence in its potential to excel in the quick commerce arena. This investment marks one of Nexus’ largest to date, reflecting Zepto’s impressive valuation trajectory over recent years.

Zepto’s valuation has experienced remarkable growth, rising from $250 million in 2021 to $1.4 billion in 2023 and now reaching $3.5 billion in 2024. This upward trajectory mirrors investors’ bullish outlook on India’s quick commerce sector, which has emerged as a $5-billion annual sales channel and is poised for further expansion, according to Goldman Sachs.

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