Zepto raises $200 million in Series-E funding: Emerges as 2023’s first unicorn

Zepto, an online grocery delivery startup, has secured $200 million in its Series-E funding round. This achievement has propelled the company’s valuation to $1.4 billion, positioning it as the inaugural unicorn of 2023.

US-based private markets investment firm StepStone Group has taken the lead in Zepto’s Series-E fundraise. Zepto was established in response to the challenges posed by the pandemic.

This investment also signifies StepStone Group’s debut direct investment in an Indian company. Furthermore, Goodwater Capital, a venture capital firm in California with a focus on consumer-centric ventures, has entered the funding round as a fresh investor. Worth mentioning is the fact that existing backers, including Nexus Venture Partners, Glade Brook Capital, Lachy Groom, and others, have significantly increased their investments during this round.

How much did Zepto raise in Series D funding round?

During the year 2022, Zepto successfully raised $200 million through a Series D funding round. This funding initiative was spearheaded by Y Combinator’s Continuity Fund, a tech startup accelerator based in the United States. This round had placed a valuation of $900 million on the rapid commerce company. Established in 2021 by Aadit Palicha and Kaivalya Vohra, who are former students of Stanford University, Zepto is also actively considering a public market debut within the upcoming two to three years. In May of the current year, Zepto made strategic promotions among several crucial executives as part of its preparations leading up to the anticipated listing.

Zepto operates by swiftly delivering a range of more than 6,000 grocery products within a mere 10-minute timeframe. This service is made possible through a distribution network comprising delivery hubs spread across the nation. This business model has garnered the label “quick commerce,” but it has faced scrutiny due to its substantial cash expenditure and the absence of a viable, enduring business framework.

The company has experienced a remarkable 300% year-on-year increase in its sales, and is set to potentially attain the milestone of $1 billion in annualized sales within the upcoming quarters, according to the company’s statement.

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