Zepto declines Walmart-owned Flipkart’s $2 billion offer, aims for $2.5 billion valuation, and pursues fresh funding.
Zepto, India’s lone unicorn of 2023 and a key player in the quick commerce sector, rebuffed a lucrative offer of nearly $2 billion from Flipkart, opting instead to seek fresh funding at a valuation of around $2.5 billion. Founders Kaivalya Vohra and Aadit Palicha, who initiated the company as Kiranakart in 2020, declined Flipkart’s proposal despite the latter’s desire for a significant stakeholding with the founders retaining operational control.
The discussions concluded when Flipkart declined a minority stake deal, as reported by The Arc. Zepto aimed for a valuation of at least $3 billion, emphasising The Arc. The company, valued at $1.4 billion in 2023, witnessed a substantial revenue surge of 14x to ₹2,024 crore in FY23, alongside a 3x increase in losses, which it aims to offset with improved margins and EBITDA breakeven within 10 months.
Amid talks, Zepto’s monthly expenditure decreased from over $12 million to $5-7 million, noted The Arc. Currently, Zepto engages in discussions with private equity firms and existing investors for fresh funding at a doubled valuation, informed The Economic Times. Palicha, emphasising the company’s financial health, hinted that future fundraising would likely prepare for an IPO.
Zepto’s remarkable growth in gross merchandise value (GMV) and its strategic positioning in the quick commerce sector reflect its potential as a key player in India’s evolving retail landscape.
