Zepto, this year’s first unicorn, raises $200 million
Amid the current funding challenges in India, Zepto, an online grocery company, has successfully secured $200 million in its Series E funding round, valuing the company at $1.4 billion. This round attracted new investors, led by the StepStone Group, and saw participation from US-based Goodwater Capital as a new investor. Existing investors, including Nexus Venture Partners, Glade Brook Capital, Lachy Groom, and others, also increased their investments in Zepto.
Established in July 2021, It has expressed its intention to go public within the next 2-3 years. The company’s CEO, Aadit Palicha, emphasized their commitment to building a long-lasting enterprise, and they view this funding as just the beginning of their journey.
Despite the challenging capital market conditions, Zepto’s disciplined approach to operations has been validated by this funding round. The company has significantly reduced its expenditure, and it anticipates achieving full EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) positivity within the next 12 to 15 months.
Zepto has experienced remarkable growth, with its sales increasing by 300 percent year-on-year. It is on track to reach $1 billion in annualized sales in the coming quarters.
The company, headquartered in Mumbai, operates a network of delivery hubs across India and offers swift delivery of over 6,000 grocery products in just 10 minutes.
