Wednesday, February 21, 2024
ad
HomeNewsZepto Raises $200 Million, Becomes First Indian Unicorn in Nearly a Year

Zepto Raises $200 Million, Becomes First Indian Unicorn in Nearly a Year

Zepto plans to use the funds to go deeper into the seven Indian metros it currently serves.

Zepto, the quick commerce aka 10-minute grocery delivery platform, has become the first Indian unicorn (a privately-held startup company valued at over a billion dollars) of 2023. The startup raised $200 million in fresh funding at a valuation of $1.4 billion.

Zepto said it raised funds from US-based investment firms StepStone Group and Goodwater Capital “in the midst of the deepest downturn in capital markets in over a decade.” Existing backers, including Nexus Venture Partners, Glade Brook Capital, and Lachy Groom, also participated in the deal.

Started by two 19-year-old Stanford dropouts in 2021, Zepto promises grocery delivery in 10 minutes. The company competes with SoftBank-funded Swiggy and Blinkit, which are all betting on fast deliveries in the quick commerce sector. However, CEO Aadit Palicha stated that Zepto has the quickest delivery time of 13 minutes.

Read More: AI cannot replace human intelligence in court rulings, says Delhi HC

Zepto plans to use the raised funds to go deeper into the seven Indian metros it currently serves. The company makes a monthly revenue run rate of $50 million – $60 million from Delhi, Mumbai, and Bengaluru alone.

Despite loss-making, a majority of Zepto’s so-called dark stores—densely located warehouses—generate cash, and the company aims to be profitable in 12-15 months. As per Palicha, the company will consider expanding to new cities after a year. Post May 2022, when it last raised funds, Zepto was valued at $900 million.

Subscribe to our newsletter

Subscribe and never miss out on such trending AI-related articles.

We will never sell your data

Join our WhatsApp Channel and Discord Server to be a part of an engaging community.

Suchitra Shenoy
Suchitra Shenoy
Suchitra is a seasoned content writer, specializing in blogs and technical topics. With a passion for continuous learning, she combines her love for knowledge with a keen eye for detail. Her other interests include sports, environmental conservation, and reading non-fictional books.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular