Zepto Raises $665 Million at a $3.6 Billion Valuation

Announcing Zepto's Series F Round

Will Robbins

June 21, 2024

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.

Disclosure: Nothing presented within this article is intended to constitute legal, business, investment or tax advice, and under no circumstances should any information provided herein be used or considered as an offer to sell or a solicitation of an offer to buy an interest in any investment fund managed by Contrary LLC (“Contrary”) nor does such information constitute an offer to provide investment advisory services. Information provided reflects Contrary’s views as of a time, whereby such views are subject to change at any point and Contrary shall not be obligated to provide notice of any change. Companies mentioned in this article may be a representative sample of portfolio companies in which Contrary has invested in which the author believes such companies fit the objective criteria stated in commentary, which do not reflect all investments made by Contrary. No assumptions should be made that investments listed above were or will be profitable. Due to various risks and uncertainties, actual events, results or the actual experience may differ materially from those reflected or contemplated in these statements. Nothing contained in this article may be relied upon as a guarantee or assurance as to the future success of any particular company. Past performance is not indicative of future results. A list of investments made by Contrary (excluding investments for which the issuer has not provided permission for Contrary to disclose publicly, Fund of Fund investments and investments in which total invested capital is no more than $50,000) is available at www.contrary.com/investments.

Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by Contrary. While taken from sources believed to be reliable, Contrary has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Please see www.contrary.com/legal for additional important information.