'Managed this fundraise because of business performance'

After raising $665 million in this year's largest funding round, at a valuation of $3.6 billion, quick commerce major Zepto is gearing up for an initial public offering (IPO). AADIT PALICHA, co-founder and chief executive officer (CEO), tells Aryaman Gupta in a video interview that the company is close to turning profitable, even as it looks to expand into newer markets. Edited excerpts:

- AADIT PALICHA

How was Zepto able to raise such a large round when funding is hard to come by?

Because of business performance. We are growing 140 per cent year-on-year and have gone from about $500 million in sales to well over $1 billion over around three quarters. We are the fastest company in internet history to hit this milestone.

How do you plan to use the money?

We are in a healthy place even with the cash we have in the bank. We look at this more as pre-IPO financing. We are confident the IPO will happen in 2025.

Some of the equity will be used in capex and expansion into new markets. However, we are generating meaningful profit from mature stores. The idea is to reinvest the profits we are making from these stores in newer businesses. Most of the investment in new stores, new markets, or customer acquisition will come from our existing profits.

How close is Zepto to achieving profitability?