On Friday, Zepto, Indian grocery delivery startup, raised $200 million in fresh funding at a valuation of $1.4 billion. This accomplishment marks the first time in nearly a year that a startup in the country has crossed the billion-dollar valuation mark, especially where many other companies in the same category have faced challenges or ceased operations.
Amidst the deepest capital market downturn in more than ten years, Zepto successfully secured the funds from prominent U.S-based investment firms StepStone Group and Goodwater Capital. Notably, existing supporters, such as Nexus Venture Partners, Glade Brook Capital, and Lachy Groom, also actively participated in the funding round.Started in 2021, Zepto gained recognition for its innovative approach to instant grocery delivery services. In competition with SoftBank-funded Swiggy and Blinkit, the company’s platform allows customers to conveniently order and receive groceries quickly, meeting the demands of today’s fast-paced lifestyle.
Zepto’s CEO Aadit Palicha said the company has the quickest average delivery time of 13 minutes.With the newly secured funds, Zepto has strategic plans to further strengthen its presence in the markets where it currently operates. “Going deeper into existing markets will not see growth taper off,” co-founder Palicha reasoned, adding that its current serviceable market offers more scope for growth than initially estimated by him. This strategic approach will help the company to enhance its services and solidify its position in the competitive grocery delivery industry.
“The company has grown its sales by 300 per cent year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters,” Zepto noted in its statement. According to Palicha, the current figures reflect Zepto’s substantial growth, with the platform achieving a remarkable $50-60 million in combined monthly sales. Additionally, it serves 10,000-plus new customers everyday.
Zepto plans to go public by 2025 as “a profitable, growing technology company that customers love,” the company said.