A Zepto store now takes six months to become profitable, compared to 23 months previously. This improvement in profitability timeline is attributed to the company's operational efficiencies and streamlined processes.
The new investors in Zepto's latest funding round include Avenir, Lightspeed, and Avra. Existing investors such as Glade Brook, Nexus, and StepStone co-led the round, while Goodwater and Lachy Groom doubled down their stakes. The funding round raised $665 million, propelling Zepto's valuation to $3.6 billion.
About 75% of Zepto's warehouses are already profitable, with the stores now taking six months to become profitable compared to 23 months previously. The company plans to continue operating with fiscal discipline as it scales from 350 stores to 700 stores by reinvesting capital generated from mature stores back into the business5.