Zepto becomes India's first unicorn of 2023, raises $200 million at $1.4 bn valuation
By Team Newsable | First Published Aug 25, 2023, 3:05 PM ISTZepto, a quick-commerce startup, raised $200 million at a valuation of $1.4 billion. The Series E round was led by the StepStone Group, a US asset management firm, and included Goodwater Capital and some existing investors.
Zepto, an online grocery delivery service, secured $200 million in Series-E funding, valuing the business at $1.4 billion and elevating it to the status of 2023's first unicorn. The Series E round was led by the StepStone Group, a US asset management firm, and included Goodwater Capital and some existing investors.
The investment also marks StepStone Group’s first direct investment in an Indian company. Noteworthy follow-on investments in Zepto were made by long-term investors such Nexus Venture Partners, Glade Brook Capital, Lachy Groom, and others.
Latest Videos
Earlier in 2022, Zepto had raised $200 million in a Series D funding round led by American technology startup accelerator Y Combinator’s Continuity Fund, which then valued the quick commerce firm at $900 million.
The funding comes at a time when the vast majority of instant delivery startups globally – Gopuff, Jokr, Getir, Gorillas, Instacart and others that collectively raised over $10 billion – have significantly curtailed their operations, have seen their private valuations plummet, or shut down entirely.
Aadit Palicha and Kaivalya Vohra, two Stanford University dropouts who started Zepto in 2021, planned to float the company on a public market within the next two to three years. In May this year, Zepto elevated several key executives in the run-up to its plans to list.
Also Read | When Bill Gates met Kusuma, a branch postmaster, in Bengaluru
Zepto essentially sends over 6,000 supermarket items in 10 minutes via a nationwide network of delivery hubs. The company has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters, the company said.
Zepto competes with Zomato-owned Blinkit, Swiggy Instamart, Reliance-funded Dunzo and Tata’s BigBasket (BB Now).
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.