Zepto Raises $200 Million, Turns Unicorn At $1.4 Billion Valuation As per the company, it has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters
By Teena Jose
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Online grocery delivery startup Zepto has raised $200 million in a in Series-E funding round at a valuation of $1.4 billion, making it the first Indian startup to attain the unicorn status this year. The fundraise brought in major new investors onto the cap table, with the StepStone Group leading the round (which is their first direct investment in an Indian company). Additionally, Goodwater Capital, a consumer-focused venture capital firm based in California, joined the round as a new investor. Additionally, existing investors, like Nexus Venture Partners, Glade Brook Capital, Lachy Groom and more, also participated in the funding.
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 company has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters, it said.
"This business is about execution and we are succeeding because our execution is strong. Our culture of deep frugality and worshipping customers has gotten us here, but there is still so much for us to achieve. We are in this to build a generational company and it truly feels like this is just the beginning," said Aadit Palicha, co-founder and CEO, Zepto.
Zepto plans to go public by 2025 as a profitable, growing technology company that customers love. For now, the Zepto team plans to be heads-down executing for the next year with the aim of building a better business, noted the company in an official statement.
"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. We are building one of the best supply chain product stacks in the country today and we are investing heavily in customer-facing products as well. This technical excellence is in our DNA, and I'm excited about the next phase of building," said Kaivalya Vohra, co-founder and CTO, Zepto.
Zepto, founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, is said to be eyeing a public market listing in the next two-to-three years.
