Zepto Becomes India's 111th Unicorn With $200 Mn Funding At $1.4 Bn Valuation

Zepto Looking To Raise $650 Mn Funding At A Valuation Of $3.5 Bn

SUMMARY

The funding round saw participation from StepStone Group, Goodwater Capital, and existing investors Nexus Venture Partners, Glade Brook Capital, and Lachy Groom

With this, Zepto became the first Indian startup to turn unicorn in 2023, ending the 11-month unicorn drought

Zepto, which competes with the likes of Instamart, Blinkit and Dunzo, has raised around $560 Mn across multiple rounds till date

Mumbai-based quick-commerce delivery startup Zepto has raised $200 Mn in its Series E funding round at a valuation of $1.4 Bn valuation, becoming the first unicorn of 2023 and ending the 11-month unicorn drought.

The funding round saw participation from new investors StepStone Group, which is the limited partner in Zepto’s existing investor Nexus Venture Partners, and Goodwater Capital. Existing investors Nexus Venture Partners, Glade Brook Capital, Lachy Groom, among others, also participated in the round.

While the startup didn’t disclose how it will utilise the fresh funds, it said it plans to go public by 2025.

Last month, Inc42 exclusively reported about Zepto entering the coveted club. Including the latest funding, Zepto has raised around $560 Mn across multiple rounds till date.

While this is the first direct investment by StepStone Group in the Indian startup ecosystem, Goodwater Capital has invested in Yellow Class, Pocket FM, and Teachmint. Goodwater Capital has also invested in Istanbul-based hyperlocal delivery startup Gettir.

Founded in 2021 by Aadit Palicha and Kaivalya Vohora, Zepto entered the market by capitalising on the rising demand for quick-commerce delivery following the outbreak of the Covid-19 pandemic. The startup first turned heads after it bagged $60 Mn in November 2021 from Glade Brook Capital, Nexus, and Y Combinator, among others.

Zepto competes against the likes of Swiggy’s Instamart, Zomato-acquired Blinkit, and Reliance-backed Dunzo. The funding round comes at a time when Dunzo is also in the final stages of closing a $100 Mn fund raise.

Meanwhile, Swiggy infused $700 Mn in Instamart in December 2021, while Zomato acquired Blinkit for $568 Mn last year.

Amid concerns about the high burn rate of quick-commerce players, Zepto claimed it has reduced its burn significantly and a majority of its dark stores are EBITDA positive now.