Quick grocery delivery platform Zepto is on the verge of securing nearly $650 million in funding from both existing and new investors, according to sources.
The investment team expects this substantial investment to elevate Blinkit’s closest rival to a valuation of approximately $3.5 billion.
Nexus and its limited partner StepStone will spearhead the new funding round, sources revealed to IANS.
However, the company has yet to officially comment on this development.
This marks Zepto’s second major fundraising event within a year.
In August last year, Zepto raised $200 million from StepStone Group, Goodwater Capital, and other investors, achieving a valuation of $1.4 billion and ending a period of unicorn scarcity in India.
That round also introduced new investors, with StepStone Group leading and US-based Goodwater Capital participating.
Founded in July 2021, Zepto has quickly made a mark in the quick commerce sector and has announced plans to go public within the next 2-3 years.
The platform reported an impressive 1,339 percent revenue growth year-on-year for FY23, although its losses also widened significantly compared to the previous fiscal year.
Zepto’s revenue surged 14 times to Rs 2,024 crore from Rs 142.36 crore in FY22, while losses tripled to Rs 1,272 crore from Rs 390 crore in FY22.
The quick delivery market in India is highly competitive, with Zepto vying for dominance alongside Zomato’s Blinkit and Swiggy’s Instamart.
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