Online Grocery Delivery Startup Zepto Raises $200 Mn In Funding
Zepto, an online grocery delivery startup, has raised $200 million (Rs 1,652 crore) as part of its Series E funding round led by global asset manager StepStone Group.
Goodwater Capital, as well as existing investors like Nexus Venture Partners, Glade Brook Capital, and Lachy Groom, among others, also participated in the funding round.
With this funding round, which valued Zepto at $1.4 billion, the startup has become the latest to join the growing list of Indian unicorns and the first in 2023.
Zepto | Online Grocery Delivery Startup
Founded by Kaivalya Vohra and Aadit Palicha, Zepto is an e-grocery firm that delivers 5000+ products, including fresh fruits and vegetables, daily cooking essentials, dairy, health-and-hygiene products, etc., to Indian homes within 10 minutes.
The online grocery delivery startup, which is planning to go public by 2025 as a profitable company, runs a network of ‘cloud stores’ or micro-warehouses from where it provides the home delivery of groceries and essentials within a few minutes.
Speaking about the development, Kaivalya Vohra, co-founder and CTO of Zepto, said,
“Even with this capital, we want to maintain our discipline, avoid complacency, and push hard to hit EBITDA positivity. In that journey, the biggest drivers of P&L improvement for us are based on technology and product.”
Through strong tech capabilities, an efficient business model, and a network of highly optimized delivery centers across its 10 locations, Zepto is revolutionizing the Indian grocery segment currently pegged at $600 Billion, making it easier and more convenient.
As per the startup, the majority of its dark stores are fully EBITDA (earnings before interest, taxes, depreciation, and amortization) positive. Additionally, it has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters.
The Mumbai-headquartered online grocery delivery startup also claimed that its burn has reduced significantly, and growing with this rate, the company will be fully EBITDA positive in 12 to 15 months.
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