Zepto, India-based online grocery company, announced its $200 million Series E fundraise, valuing the company at $1.4 billion.

The fundraise brought in major new investors onto the cap table, with the StepStone Group leading the round (which is their first direct investment in an Indian company). Additionally, Goodwater Capital, a consumer-focused venture capital firm based in California, joined the round as a new investor.

Notably, existing investors, like Nexus Venture Partners, Glade Brook Capital, Lachy Groom and more, doubled down in Zepto with meaningful follow-on investments.

This fundraise, in the midst of the deepest downturn in capital markets in over a decade, validates Zepto’s best-in-class operating discipline. Zepto has proven the Quick Commerce business model by turning the majority of its dark stores fully EBITDA positive. Zepto’s burn has reduced significantly, and with this trajectory, the company will be fully EBITDA positive in 12 to 15 months.

More importantly, Zepto has delivered these profitability numbers while continuing to grow rapidly. The company has grown its Sales by 300 percent year-on-year and will likely achieve $1 Billion in annualized sales within the next few quarters.

Aadit Palicha, Co-founder & CEO of Zepto, said, “This business is about execution and we are succeeding because our execution is strong. Our culture of deep frugality and worshipping customers has gotten us here, but there is still so much for us to achieve. We are in this to build a generational company and it truly feels like this is just the beginning.”

Kaivalya Vohra, Co-founder & CTO of Zepto, shared, “Even with this capital, we want to maintain our discipline, avoid complacency, and push hard to hit EBITDA positivity. In that journey, the biggest drivers of P&L improvement for us are based on technology and product. We are building one of the best supply chain product stacks in the country today and we are investing heavily in customer-facing product as well. This technical excellence is in our DNA, and I’m excited about the next phase of building.”

With this outlier performance and execution, Zepto plans to go public by 2025 as a profitable, growing technology company that customers love. For now, the Zepto team plans to be heads-down executing for the next year with the aim of building a better business everyday.

Founded in 2021 by Stanford University dropouts, Aadit Palicha and Kaivalya Vohra, Zepto became one of India’s fastest-growing internet companies of all time. Headquartered in Mumbai, Zepto has delighted millions of customers by delivering 6,000+ grocery products in 10 minutes through a network of delivery hubs across the country.

India’s internet economy to reach $1 trillion by 2030, says report