Revenue of Zepto surges beyond double in Fiscal Year 25, secures funding with a valuation exceeding $5 billion
Zepto Pvt Ltd Secures Significant Funding, Aims for Profitability
In a recent development, Zepto Pvt Ltd, a leading player in India's grocery delivery sector, has secured Rs 7.5 crore from Elcid Investments Ltd. This investment comes as part of a larger funding round, with indications pointing towards a valuation of over $5 billion, and some estimates placing it close to $5.9 billion (around Rs 51,369 crore).
The funding round, which is still in progress, is seeking to raise between $450 million and $500 million at a higher valuation of about $7 billion. However, the exact valuation of Zepto in this current round remains undisclosed.
The investment from Elcid Investments has increased their stake in Zepto to 0.039%. This latest funding round, which occurred in November 2022, saw Zepto raise $350 million, led by Motilal Oswal AMC.
Zepto's financial performance for FY25 is not yet available, but the company has reported significant growth in its revenue. In FY24, the company posted a net loss of Rs 1,249 crore but managed to reduce its EBITDA and operating cash flow burn by 50% in the first three months of the year. Despite the losses, Zepto's revenue for FY25 jumped 150% to Rs 11,109.95 crore.
The company's annualized gross order value (GOV) was nearing $4 billion, as stated by CEO Aadit Palicha in April. Zepto's total negative cash flow from operations in FY24 was about Rs 1,131 crore.
Zepto's growth comes amidst stiff competition in the market. The company competes with Swiggy Ltd and Eternal Ltd. Swiggy's total revenue in FY25 rose to Rs 15,623 crore, while Eternal's total revenue increased to Rs 21,320 crore in FY24.
Despite the competition, Zepto is aiming for profitability and preparing for an IPO expected in late 2025 or early 2026, targeting a strong market position before public listing. The company believes it is on track to reach EBITDA and operating cash flow break-even within a few months.
This investment and Zepto's impressive growth indicate a promising future for the company as it continues to navigate the competitive landscape of India's grocery delivery sector.
Zepto Pvt Ltd, with this recent investment, is adding technology to its business strategies to enhance its investing capabilities in the finance sector. The company's aim, with profits from the business, is to re-invest in technology for further growth and competitiveness in the market.
