New Delhi, July 29 -- Quick commerce company Zepto Pvt Ltd's revenue for the year through March 2025 more than doubled from the year before but it raised a small amount of capital from a Mumbai-listed company at a far lower valuation than before.

The startup, which was valued at $5 billion in its last external round, is raising Rs 7.5 crore from Elcid Investments Ltd, as per a stock market disclosure. The investment will give Elcid a 0.039% stake in Zepto. This translates into a valuation of Rs 19,230 crore (over $2.2 billion), according to a VCCircle estimates.

The disclosure showed also that Zepto's revenue for FY25 jumped 150% to Rs 11,109.95 crore from Rs 4,454.52 crore in the prior financial year. In FY23, the company recorded revenue of about Rs 2,024.4 crore.

Zepto competes mainly with Swiggy Ltd and Eternal Ltd, the parent of Zomato and Blinkit. Swiggy's total revenue in FY25 rose to Rs 15,623 crore from Rs 11,634 crore while Eternal's total revenue increased to Rs 21,320 crore from Rs 12,961 crore in FY24.

The development comes amid reports that Zepto was in talks with investors to raise fresh capital of around $450-500 million at a valuation of as much as $7 billion.

Zepto had raised over $1 billion in multiple rounds last year. In its most recent funding round last November, the startup raised $350 million at a valuation of $5 billion, led by Motilal Oswal AMC, with participation from family offices and investors such as the Taparia Family Office and Mankind Pharma Family Office, among others.

The reasons behind the latest fundraising at a lower valuation than before couldn't be ascertained.

In April, Zepto CEO Aadit Palicha said in a social media post that the company's annualised gross order value (GOV) was nearing $4 billion, implying a 4x growth from a year ago. GOV represents the total value of all orders placed, before any deductions, returns, cancellations, or discounts.

While the full financial performance for FY25 was not available, in FY24, the company had posted a net loss of Rs 1,249 crore.

Palicha had also said in April that Zepto reduced its EBITDA and operating cash flow burn by 50% in the first three months of the year despite "meaningful" growth. He indicated at the time the company would reach EBITDA and operating cash flow break-even within a few months, owing to a large net cash buffer still on the company's balance sheet.

Zepto had the second-highest negative cash flows in a list of 50 funded startups, as per a VCCircle study earlier this year. It reported a negative cash flow from operations of about Rs 1,131 crore in FY24.

Published by HT Digital Content Services with permission from VC Circle.