Zepto, a Quick commerce company, has secured $665 million in its Series F funding round from new investors Avenir, Lightspeed, and Avra (Anu Hariharan’s new fund), among others.

Some of the existing investors Glade Brook, Nexus, and StepStone co-led the round with Goodwater and Lachy Groom doubling down their stakes as well.

As per the startup, the funding will be used to compete with other two deep-pocketed players, BlinkIt and Swiggy Instamart. Unlike the West, quick commerce operators in India claim to have found a sustainable model.

Zepto claims that it has achieved near EBITDA positivity with 140% year-on-year growth and an annualized gross merchandise value of over $1 billion.

According to Zepto, about 75% of its stores are fully EBITDA positive as of May 2024.

Zepto | Quick Commerce Startup

Founded by Stanford dropouts Aadit Palicha and Kaivalya Vohra, who founded Zepto in 2021, have secured backing from existing investors led by Glade Brook Capital, StepStone Group, and Nexus Venture Partners. Others include Goodwater Capital and Lachy Groom.

This fundraiser also marks the formal launch of Avra Capital, a growth equity fund started by Anu Hariharan (the former MD of Y Combinator Continuity). Zepto is the firm’s first investment globally.

Meanwhile, Walmart-owned Flipkart is also gearing up to launch a quick commerce service soon. 

Speaking about the development, Aadit Palicha, co-founder and chief executive officer of Zepto, said,

“We are in a pretty healthy place even with the cash we have in the bank. We look at this funding round more as a pre-IPO financing to build our balance sheet ahead of our upcoming IPO. Having this cash enables us to launch an IPO of meaningful scale”.

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