Zepto Becomes the First Indian Unicorn
Indian instant grocery delivery startup Zepto, has clinched the title of the first unicorn of 2023 in the country’s entrepreneurial landscape. While many other startups within the same category have faltered or are grappling with challenges, Zepto has successfully raised a staggering $200 million, propelling its valuation to a remarkable $1.4 billion. Remarkably, this feat follows Zepto’s valuation of $900 million just last year in a funding round unveiled in May. The startup’s journey has been marked by a total capital infusion of approximately $560 million to date. Notably, Zepto Co-founder and CEO Aadit Palicha clarified that there were no secondary transactions involved in this recent funding endeavor. The Series E funding round that pushed Zepto into unicorn territory was spearheaded by StepStone Group, a prominent Limited Partner (LP) in various venture funds. This investment marks StepStone Group’s inaugural direct foray into the Indian market. Joining the funding initiative were key players including Goodwater Capital, Nexus Venture Partners, Glade Brook Capital, and Lachy Groom, alongside existing backers. Zepto’s triumph arrives at a time of adversity for many instant delivery startups on a global scale. Industry giants such as Gopuff, Jokr, Getir, Gorillas, and Instacart, who collectively amassed over $10 billion, have experienced significant cutbacks in operations, plummeting private valuations, and even complete shutdowns. Even within India, the landscape has seen its share of setbacks, with BlinkIt selling for less than its raised capital and Dunzo, backed by Reliance Retail, grappling with employee payment deferrals and layoffs following an ambitious but unsuccessful expansion strategy. Founded by Aadit Palicha and Kaivalya Vohra while they were just 19 years old, Zepto emerged from stealth mode in November 2021. The startup operates as a comprehensive delivery platform, offering everything from groceries to electronic gadgets, and efficiently processes over 300,000 daily orders across seven Indian cities. Employing a network of strategically located “dark stores” in popular neighborhoods, Zepto has achieved impressive operational efficiency, with the majority of these stores generating positive EBITDA. In an era where financial discipline is paramount, Zepto has significantly reduced its expenditure and is now aiming for IPO readiness within the next 12 to 15 months, riding on a company-wide positive EBITDA metric. With an annualised revenue run rate exceeding $700 million and a staggering 300% year-on-year sales growth, Zepto has set its sights on reaching $1 billion in annualised sales in the upcoming quarters.
Zepto has successfully raised a staggering $200 million, propelling its valuation to a remarkable $1.4 billion.
Indian instant grocery delivery startup Zepto, has clinched the title of the first unicorn of 2023 in the country's business landscape.
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["Go", "API", "funding", "unicorn", "AI", "IPO", "Ray", "Aim", "R", "startup"]
["AI", "Aim", "Ray", "R", "Go", "API", "startup", "unicorn", "funding", "IPO"]
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.