After becoming unicorn, Zepto is targeting $3 billion valuation with $300 million round: Report

It was just seven months ago that Zepto became a unicorn, and now the startup is reportedly targeting a much higher valuation with a significantly larger funding round.

According to an ET report, Zepto is in discussions with investors to raise at least $300 million in funding at a valuation of around $2.5-$3 billion.

Previously, the quick commerce startup raised $200 million in funding, becoming India's first unicorn startup in 2023 with a valuation of $1.4 billion. It is eyeing a future where it not only leads the quick commerce space but also ventures into broader e-commerce territories.

Aiming to become EBITDA positive

The Mumbai-based startup aims to become EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) positive by September this year. The report also said that the startup currently has an annualized gross sale run rate of $1.2 billion. 

Recently, it introduced a platform fee and a revised delivery fee structure, indicating that it is moving toward profitability and further expansion.

Expanding operations

Zepto operates around 340 dark stores, with over 200 already EBITDA positive. The operational footprint is part of Zepto's aggressive expansion plan, aiming to outpace competitors like Zomato-owned Blinkit and Swiggy Instamart.

The entry of Walmart-owned Flipkart into quick commerce adds urgency to bolstering Zepto's market position.

What did Zepto say?

While Zepto CEO Aadit Palicha said the company is not actively seeking capital, if the deal goes through, it can enhance the company's balance sheet as well as equip it with the resources to navigate the competitive landscape effectively.

Palicha said Zepto is focused on growing its business and improving EBITDA margins, following a significant 100% growth since the last fundraise in October and a 600 basis point improvement in EBITDA.