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Zepto, a three-year-old Indian quick commerce startup, has secured a staggering $1.05 billion in funding over two months, highlighting the burgeoning potential of the country's fast-growing delivery sector. The company, which competes with established players like Zomato-owned Blinkit, Swiggy Instamart, Flipkart Minutes, and Tata's Big Basket, raised $340 million on August 29th, following a previous $665 million round on June 21st. This brings Zepto's total funding to approximately $1.5 billion since its inception in 2021.
The latest funding round underscores the confidence investors have in Zepto's ability to disrupt the Indian e-commerce landscape. Co-founder and CEO Aadit Palicha highlighted the significance of securing investment from General Catalyst, led by Neeraj Arora, describing it as an opportunity they couldn't pass up. Palicha emphasized the strategic importance of strengthening Zepto's financial position to support its continued growth and operational leverage. While acknowledging the company's impressive performance to date, he emphasized that significant execution remains ahead to achieve their goal of establishing a world-class internet company from India.
Zepto's financial performance in FY23 demonstrates its remarkable momentum. The company achieved a revenue of ₹2,024 crore, a substantial 1,335% increase year-on-year compared to ₹141 crore in FY22. However, despite this impressive revenue growth, Zepto incurred a net loss of ₹1,272 crore in FY23, reflecting the significant investments required to scale its operations and secure market share in a highly competitive environment. The company's ambitious growth strategy necessitates significant capital expenditure, as it seeks to expand its delivery network, refine its technology infrastructure, and optimize its logistics processes to meet the demands of a rapidly expanding customer base.
Source: How Zepto raised $1.05 billion in two months: ‘Couldn't pass opportunities…’