Zepto Raises $200 Million in Series-E Funding, Becomes First Indian Unicorn of 2023

• ByStartupStory     |    August 25, 2023

Online grocery delivery startup Zepto has successfully raised $200 million in a Series-E funding round, propelling its valuation to $1.4 billion. This milestone marks the end of India’s 11-month drought in producing new unicorns.

The fundraise was spearheaded by StepStone Group, a US-based private markets investment firm. Goodwater Capital, Nexus Venture Partners, GladeBrook Capital, and individual investor Lachy Groom also participated in this funding round, highlighting the strong investor confidence in Zepto’s potential.

Zepto’s significance extends beyond its impressive funding accomplishment. It is the first startup in 2023 to achieve unicorn status in India, marking a promising start for the country’s entrepreneurial landscape. This achievement follows a period of cautious investment, indicating Zepto’s robust business model and growth potential.

The funding round’s success provides Zepto with the resources to thrive in a fiercely competitive sector. The company operates in the quick commerce space, delivering a wide range of grocery products within 10 minutes through an extensive network of delivery hubs across India.

Despite the challenges posed by a capital market downturn, Zepto’s operational discipline and prudent business approach have secured investor confidence. The startup has successfully demonstrated the viability of the quick commerce business model, achieving EBITDA positivity for the majority of its dark stores. Zepto’s financial performance highlights its ability to balance rapid growth with sustainable profitability. Looking ahead, the startup envisions its initial public offering (IPO) in early 2025, a testament to its long-term vision and strategic planning.

Aadit Palicha, Co-founder and CEO of Zepto, emphasized the company’s mission and commitment to excellence. “We are in this to build a generational company and it truly feels like this is just the beginning,” he stated.

The funding news arrives at a time when the quick delivery industry is experiencing financial pressures. Zepto’s success in securing funds showcases its resilience and investor appeal within the dynamic and competitive market.

Kaivalya Vohra, Co-founder and CTO of Zepto, discussed the startup’s strategy for sustained growth. “Even with this capital, we want to maintain our discipline, avoid complacency, and push hard to hit EBITDA positivity. In that journey, the biggest drivers of P&L improvement for us are based on technology and product,” Vohra highlighted.

Zepto’s journey not only signifies its own success but also serves as a beacon of optimism for the Indian startup ecosystem. The company’s commitment to innovation, customer-centricity, and disciplined growth positions it as a trailblazer in the evolving landscape of quick commerce.

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