Zepto Clinches Unicorn Status with $200 Million Funding, First in India for 2022

On Friday, the Indian grocery start-up, Zepto, announced it had raised $200 million in new funding, positioning the company at a valuation of $1.4 billion. This milestone makes Zepto the first Indian startup to surpass a billion-dollar valuation in almost a year. Investment companies including StepStone Group and Goodwater Capital from the US contributed to the funding, alongside current supporters such as Nexus Venture Partners, Glade Brook Capital, and Lachy Groom.

Founded in 2021 by two young Stanford dropouts, Zepto faces competition in the quick commerce space from enterprises such as Swiggy and Blinkit. However, Zepto claims to have the fastest average delivery time at 13 minutes, and it aims to improve services in seven major Indian cities using the recent funding. 

Its monthly revenue stands between $50 million to $60 million, according to CEO Aadit Palicha. Palicha further shared plans for an IPO (Initial Public Offering) in 2025. Despite currently operating at a loss, he stated that the firm is aiming for profitability in 12 to 15 months, with the company's warehouse network (known as 'dark stores') already generating income. Expansion plans into new cities will be considered after a year. 

Following its last funding round in May 2022, Zepto was valued at $900 million. It has reportedly tripled its sales in a year and is projected to reach $1 billion in annual sales in the upcoming quarters.