Zepto Raises $200 Million from VCs and Investors Making it's Way to India's First Unicorn
Zepto, a Mumbai-based quick commerce platform, has raised $200 million in new capital at a valuation of $1.4 billion, making it the country's first unicorn in nearly a year. This round was led by new investors StepStone Group and Goodwater Capital, as well as existing backers Nexus Venture Partners (where StepStone is a limited partner) and GladeBrook Capital, as well as individual investor Lachy Groom.
The timing of Zepto's fundraising is significant, given the drop in investments into growth- and late-stage startups on one hand, and the correction in the quick commerce segment on the other. In May 2022, the startup raised $200 million at a valuation of $900 million.
The latest fundraiser gives Zepto firepower in a highly competitive segment, where the company is jostling for position with the likes of Zomato-owned Blinkit, Swiggy Instamart, and Tata-owned BigBasket. The other key player in the segment, Reliance Retail-backed Dunzo, has seen a sharp downturn in its consumer business and is struggling to close new financing to clear pending dues.
Aadit Palicha, cofounder and CEO of Zepto, stated that the funds will be used primarily to invest in growth while aiming for Ebitda profitability in the next 12-15 months. He also stated that Zepto intends to expand its presence in existing markets and to invest more in its add-on offerings, such as Zepto Cafe, which delivers beverages and snacks from its dark stores in 10 to 20 minutes. To that end, Zepto has formed alliances with quick service restaurant chains such as Chaayos and Blue Tokai.