Zepto In Talks For A Massive $300M Fundraise, Valuation Could Skyrocket To $3B

Indian quick commerce sensation, Zepto, is reportedly in advanced discussions to secure a funding round of $300 million at a staggering valuation of around $2.5 to $3 billion.

What Happened: According to a report by The Economic Times on Tuesday, Zepto, known for its promise of 10-minute deliveries, is in the process of negotiating a significant fundraise. The report said that Zepto is aiming to achieve EBITDA positivity by September. The company currently boasts an annualized gross sale run-rate of $1.2 billion.

Sources told the business daily that talks with global investors, including sovereign wealth funds, are underway, with plans for a new fundraising round to be discussed in an upcoming board meeting.

Zepto operates approximately 340 dark stores, with over 200 already achieving EBITDA positivity. For context, Blinkit operates over 450 dark stores across 25 cities, while Swiggy Instamart’s presence extends to over 500 dark stores.

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Why It Matters: This news comes on the heels of Zepto’s recent strategic shift towards profitability. Zepto introduced a platform fee of ₹2 per order, a first in the quick-commerce sector. This move, while innovative, is relatively uncommon in sectors like e-commerce and food delivery, typically seen in more mature markets.

In addition to the platform fee, Zepto also implemented a ₹15 "late-night handling fee" for orders placed after 11 p.m. in certain scenarios. The company revised its delivery fee structure as well, discontinuing free deliveries for select users and now charging between ₹5 and ₹28 based on the order value. This strategic shift is aimed at bolstering profitability.

This potential fundraise could provide Zepto with the financial muscle to further its profitability goals and continue its rapid expansion in the quick commerce market.

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