Quick-commerce company Zepto on Friday announced it has secured $665 million in a funding round, which has doubled its valuation to $3.6 billion, media reported.

This round is one of the largest in the quick commerce sector this year.

The Series F round was co-led by existing investors StepStone Group, Nexus Venture Partners, Glade Brook Capital, Goodwater, and Lachy Groom.

New investors Avenir Growth, Lightspeed Venture Partners, and Avra also participated. This funding arrives as Zepto prepares for an initial public offering (IPO) within the next 12-15 months and aims to achieve profitability before going public, according to media reports.

This development intensifies the quick commerce competition with rivals such as Zomato-owned Blinkit, Swiggy Instamart, which is preparing for the public markets, and Tata Digital-owned BigBasket also expanding their operations.

Zepto's gross merchandise value (GMV) has grown year-on-year to exceed $1 billion, with approximately 75% of the company’s stores being fully EBITDA positive as of May 2024. According to Palicha, the stores now reach profitability in six months, a notable improvement from the previous 23 months, reported Business Standard.

“We have executed fairly well and are the fastest-growing Indian company to hit a billion dollars in GMV (gross merchandise value) terms and we continue to grow at over 100% year-on-year… I think, if we didn't execute regardless of what industry we were in, we would not have been able to successfully get this financing,” Palicha said on the mega fundraise, according to the Economic Times.