Zepto raises $665M at a $3.6B valuation, plans to double store count by March 2025

Delhi: Zepto has raised $665 million at a $3.6 billion valuation in a highly oversubscribed round – 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.

Commenting on the company’s trajectory, 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. If we are able to achieve this while continuing to delight customers, I believe we will be ready to go public relatively soon.”

Co-founder and CTO, Kaivalya Vohra, added, “The most exciting part about this next phase of Zepto’s journey are the major new projects that will provide a 10X customer experience, from launching new categories to expanding initiatives like Zepto Pass. To build out this roadmap, we plan to hire top talent across engineering, product, growth, finance, operations, and category management. If you are looking for a high growth, high meritocracy and high intensity culture where you can convert hard work and ambition into disproportionate career growth, Zepto is the place for you.”

Paul Hudson, CIO of Glade Brook Capital Partners, said, “Zepto is redefining e-commerce in India, with uniquely strong product-market fit and world-class execution and innovation. The Zepto team embodies what is possible for the next generation of Indian founders, and Glade Brook could not be more excited to continue our partnership.”

This fundraise also marks the formal launch of Avra Capital, a growth equity fund started by Anu Hariharan (the former MD of Y Combinator Continuity). Zepto is the firm’s first investment globally. 

Commenting on the milestone, Hariharan shared, "We are thrilled to partner with Zepto once more, this time through Avra, marking our first global investment. Zepto may appear to be a mere 10-minute quick commerce company at first glance, but they are transforming Indian e-commerce by creating the 'Hyperlocal Amazon,' combining affordable prices with local convenience."