Zepto's IPO on the Horizon: Company Secures $665 Million in Largest Funding Round of the Year

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Zepto Prepares for IPO After Doubling Valuation to $3.6 Billion

Grocery delivery startup Zepto is gearing up to go public after more than doubling its valuation to $3.6 billion in a recent round of financing led by both US and local investors. The company raised $665 million from new investors, including private equity firm Avenir, venture firm Lightspeed, and Avra, a new fund started by former Y Combinator Continuity head Anu Hariharan. Existing investors such as Glade Brook, Nexus, and StepStone Group co-led the round, according to a statement by the startup.

Zepto's valuation surge comes as the company is on track to handle more than $1 billion worth of goods annually, based on its performance in May. Approximately three-quarters of its warehouses were making an operating profit in May, and the company noted that its stores now take about six months to become profitable, compared to around two years previously.

The company plans to double its number of warehouses to over 700 by March 2025 by reinvesting sales from mature stores to fund this expansion.

“I believe we will be ready to go public relatively soon,” said Aadit Palicha, Co-founder and Chief Executive Officer of Zepto.

Zepto faces competition from major players including e-commerce giant Amazon.com, SoftBank Group Corp.-backed Swiggy, publicly-traded Zomato Ltd, and conglomerate Tata Group’s BigBasket.



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