Today, Zepto announced their $665 Series F at a $3.6 billion valuation – a remarkable milestone. We’re proud to have backed the company since its day of incorporation, and we’re excited to continue supporting Aadit, KV, and the Zepto team.
Zepto is now doing over $1 billion in annualized sales, with over 75% of its dark stores being fully EBITDA positive as reported. And all of this has happened in less than 4 years since the company’s incorporation in late 2020.
The coming years will be about the execution of the Zepto vision: hyper-local commerce for a hyper-local India. Imagine having the selection of Costco available for delivery in 15 minutes or less — with better prices than your local brick-and-mortar vendors.
Just as e-commerce platforms of the past were some of the most important companies built in their times, Zepto aims to become a generational player in the Indian startup world. We know this having observed the team from the true beginning, before the company even existed. Aadit and KV know that becoming the go-to online platform for India is a staggering opportunity to pursue.
The secret of Zepto's success thus far is simple to explain, but monumentally challenging to replicate: ruthless focus on technology and efficiency. Less than two years into the Zepto journey, for example, the company redesigned the packaging of their delivery bags to save a single rupee on delivery costs. In this era of excess capital chasing few quality investment opportunities, it's jarring to see founders obsess over something that literally saves one penny.
While millions of Indians today have access to quick-commerce services, looking ahead a decade or more, the 1.4 billion people living in India will all need a robust quick commerce supply chain and the benefit of better economies of scale. This opportunity is nearly unprecedented in raw size. You can read more about Zepto's addressable market and its journey so far in our Contrary Research memo.
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