2022 In Review: The Best Of Inc42’s 30 Startups To Watch

Indian startups witnessed a roller-coaster ride in the past three years. They were pounded by the pandemic in the first place, followed by geopolitical uncertainties and the ongoing economic downturn. However, technology adoption, strategic thinking and a VC-led funding spurt (2021 turned out to be a record year in terms of capital inflow) kept the lights on for the startup ecosystem.

Overall, startups across the country found ways to adapt and innovate, positioning themselves for success in a fast-changing market.

The trials and tribulations continued, though, and many companies (even mature businesses) did little to impress their users in 2022. In contrast, a host of early stage startups rose and shone with solutions that addressed real-life pain points.

Interestingly, the strategy playbook of Indian startups also underwent a sea change during this critical phase. With the onset of a funding winter in 2022, startups abandoned their growth-at-any-cost strategy and focussed on revenue generation for long-term play. When consumer spending dwindled, businesses embraced utility and value addition to keep them coming back. And when the competition was fierce, we observed market consolidations as never before.

As always, Inc42 has carried the torch for the country’s startup ecosystem, and our flagship series, 30 Startups To Watch, has been a testament to that.

In the past 11 editions, we have featured 320+ startups across sectors, and in this special edition, 2022 In Review, we bring you the top startups from those 320+ business entities.

The top two sectors with the maximum number of startups from our 2022 lists include enterprisetech and fintech. We have featured more than 90 enterprisetech startups across HR, marketing and sales, inventory and billing management and more. Similarly, we have listed 88 fintech and blockchain startups operating in a number of sub-sectors such as insurance, lending, investment/wealth management and lending.

Other sectors with a large number of startups are ecommerce (61), healthtech (17) and EV (9).

Most of these startups were launched shortly after the tech push post-pandemic and are bootstrapped or sparsely funded.

Sadly, some of these early stage startups also fell prey to harsh market conditions and shut down their operations or laid off many employees.

After A Harsh Funding Winter, Can Spring Be Far Behind?

As experts predict, the downturn will likely continue for at least a couple of quarters going into 2023. But in spite of the tight money supply, drastic cuts in expenditure, pivots and shutdowns, there is much to be optimistic about the new year.

“While the world slips into an economic slumber, Indian founders and teams will build. From our experience across multiple cycles, we know that the right motivations drive the founders who start their entrepreneurial journey under these conditions. They will build business models with more core strength,” Nitin Sharma, partner at the VC fund Antler India and global blockchain lead at Antler, told Inc42.

According to him, the key themes in 2023 will be the emergence of GenZ founders, the rise of SaaS and deeptech and the adoption of digital public goods as startups focus on building global platforms instead of geography-specific products.

As startups develop innovative technologies and new business models in sync with evolving requirements, exciting things are bound to be in store. Besides, many will find strategic sweet spots and product-market fits, leading to impressive growth narratives.

The regulatory landscape also continues to evolve, providing more growth opportunities as startups push the boundaries and explore new horizons.

While reviewing the startups featured in our 30 Startups To Watch column throughout 2022, we took a close look at their growth and explored their plans moving forward. Here is a rundown of the top 20’s achievements and vision. However, we need to keep in mind that business rules and the environment will continue to shift in 2023, and new leaders will emerge.

Editor’s Note: The list below is not meant to be a ranking of any kind. We have listed the startups in alphabetical order.

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Arthan Finance

Loan Disbursements Jump 7x, Profitability On The Cards

Short-term, small-ticket lending is the core business model of many fintech startups. But Mumbai-based Arthan Finance has seen growth like no other. Inc42 featured the MSME lender in January 2022, when it used to disburse monthly loans worth INR 5 Cr. But the amount jumped more than 7x, crossing INR 35 Cr in December. Additionally, the number of loans processed each month reached 2.5K+ compared to 400 in December 2021. Overall, it disbursed INR 300 Cr since its launch in 2018, of which INR 250 Cr was paid out in 2022.

Arthan also hit operational breakeven in November as the number of loan disbursals  grew nearly 10x year over year. Its AUM also quadrupled YoY, from INR 25 Cr to INR 100 Cr. Besides, its branch network doubled as it launched operations in 27+ states and UTs, 200+ cities and 3K+ pin codes. 

The lending tech startup raised $6 Mn in equity and $10 Mn in debt funding from Dell Foundation and other existing investors. Arthan will use the money to lend to more than 50K businesses and disburse loans worth INR 750 Cr+ in 2023.

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BuyOFuel

This Biofuel Aggregator Clocks 2x Rise In User Base, Revenue

To reduce India’s dependence on exports and fossil fuels, the government wants to ensure that biofuels will account for 20% of the country’s total fuel mix by 2030. Among the cleantech startups working towards this end is Coimbatore-based BuyOFuel, which aggregates biofuel suppliers, consumers and waste generators (waste biomass is converted to biofuels). 

When Inc42 listed the startup in May 2022, It had a user base of 1K+. The number nearly doubled to 1.8K+ in the following six months as BuyOFuel launched its Android and iOS apps in June to grow its user base. It claims that 90% of its users are active and repeat customers, and the business has clocked a 2x increase in monthly revenue since May 2022. 

The cleantech platform saw transactions involving 30K million tonnes (MT) of waste and biofuels since May, substituting 10K MT of fossil fuels. It plans to launch a sustainability dashboard to help businesses with their ESG reporting based on global greenhouse gas protocols. 

BuyOFuel is also working with small companies to help them generate a regular income from waste sales and thus establish a sustainable market. It is currently operational in certain parts of west and southern India but aims to foray into north India in 2023 and clock INR 200 Cr+ in annual revenue.

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Capitall

Gross Margins Up By 35%; MSME Funding Among Key Pillars

After equity financing took a backseat in 2022 due to economic headwinds, debt-based crowdfunding (P2P lending) surged as a viable option for many businesses. Since Inc42 listed Capitall in February 2022, the crowdfunding-based lending tech startup decided to bank on this emerging trend to grow its business manifold.

The Bengaluru firm redesigned its underwriting algorithm to include MSMEs, in addition to startups, which were its sole clients until September. Between September and December, the MSME sector accounted for 30% of its monthly loan disbursements.  

Throughout the year, Capitall onboarded more than 1,500 new investors, funded nine companies and signed lending term sheets worth INR 1.5 Cr+. It also tied up with a P2P NBFC partner.

Capitall claims a 35% YoY rise in gross margins in 2022. Its north-star metrics included a 120% monthly growth in loan disbursements, a 72% repeat borrower rate and a 30% rise in the average investment amount per deal, while 45% of users referred new customers. It also claims zero NPAs/delayed repayments and a 25% rise in the average loan amount. 

In 2023, the startup aims to raise a seed round, reach INR 10 Cr in monthly disbursements and have INR 30 Cr+ assets under management (AUM) from its community of investors. It will diversify investment opportunities by including fixed-income options, enter Tier 2 cities to widen its MSME client base and onboard overseas investors to let the world invest in India’s growing economy.

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Chargeup

This Battery-As-A-Service Provider Serves 2K+ EV Drivers, Clocks 1 Lakh Monthly Swaps

New Delhi-based Chargeup wants to accelerate the adoption of electric vehicles through its network of battery swap stations, which will reduce range anxiety and enhance ease of use. When Inc42 featured the startup in April, it used to serve 1.2K drivers via its 150+ swap stations in Delhi-NCR. 

Although it has not extended its operations beyond the region yet, the number of swap stations has gone up to 200+. Currently, the startup clocks 1 Lakh swaps per month and caters to 2K+ EV drivers. 

Chargeup recently raised a pre-series A round of $7 Mn from Capital A, Anicut Capital and several angel investors to expand its services to 20 more cities and increase its user base to 50K+ in 2023.

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Elever

INR 3.5 Cr Assets Under Administration; Equity-Only Portfolios Launched

Since it was featured in Inc42’s fintech edition (July 2022), investment tech startup Elever added new financial goals to its offerings, including vehicle purchase and early retirement plans. Most notably, the company launched five equity-only portfolios in November for passive, long-term investments to help its 3.5K users.

The Bengaluru-based startup plans to launch 15-20 more equity-only portfolios by March this year. It has also started beta-testing financial planning services to increase assets under administration (AUA) and drive conversion rates. Currently, it has INR 3.5 Cr worth of AUA, with a monthly committed SIP of INR 26 Lakh. 

The startup saw 25K+ app downloads and 3K+ sign-ups during August-December, clocking MoM growth of 119% and 58%, respectively.  

In 2023, Elever will push financial planning and tactical model-based equity strategies like factor and sector rotations. It will also provide B2B services (details undisclosed) from Q2 2023 and aims to serve 50K customers by the end of the year, amassing $60 Mn AUA in the process.

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Explorex

This Restaurant SaaS Player Operates In 15 Cities; Billing Volume Up 25% MoM

SaaS was suitable for digitalising restaurant operations when eateries functioned partially amid the Covid-19 pandemic. By the time fine dining (and all other establishments) became fully operational again, the benefits of this technology were heartily acknowledged and actively sought. As a result, restaurant SaaS specialists like Explorex have continued to flourish. 

Featured by Inc42 in July 2022, the Bengaluru-based startup soon experienced rapid growth in the food & beverages space. For instance, more than 50% of the payments at its client restaurants were processed on its web-based platform. Within four months, it handled $1.5 Mn worth of bills, clocking 25% MoM growth in billing volume. It also added 150 restaurants to its client portfolio between July and December 2022 and started operations in Mumbai and Delhi, taking its presence to 15 Indian cities. 

Explorex processed more than 3 Mn orders worth INR 150 Cr+ since its launch in 2020. It also received four awards from the restaurant and the SaaS sectors and secured a seed round of $5 Mn. 

The startup has partnered with Pine Labs (for payment gateway) and Axis Bank (to help restaurants take business loans). It will focus on customer acquisition, product development and pan-India expansion in 2023.

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Falca Solutions

Achieved: A 100K-Strong Active Farmer Base, INR 150 Cr In Annual Revenue

Agritech startup Falca Solutions has digitalised many critical functions of traditional agribusiness since 2018 and made it to the Inc42 list in October 2022. 

In the two months that followed, the Bengaluru-based startup piloted its f-Hire feature to connect farmers with agri machinery renters and onboarded more than 11K farmers. 

In December, Falca started to procure maize, soybean, wheat and paddy in three districts of Madhya Pradesh for export. It also secured $2 Mn in debt funding and bagged supply contracts for 7K tonnes of maize and 30K tonnes of paddy from leading agri manufacturers and exporters, respectively. 

The startup claims an annual revenue of more than INR 150 Cr in 2022 and an active farmer base of 100K.

Falca eyes annual revenue of INR 300 Cr in 2023 by expanding its operations in Karnataka, Tamil Nadu, Maharashtra and Madhya Pradesh. It will open 60+ physical centres to onboard 150K+ farmers by the end of this year.

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Goldsetu

Onboarded: 5K+ Jewellery Retailers; Nearly 50% Avail Procurement Services

Pandemic or not, fine jewellery is selling, but the way of doing business has changed from traditional to digital to ensure business continuity and growth. Leading this digital transformation is Noida-based SaaS startup Goldsetu, creating digital storefronts for jewellery retailers, automating workflow and offering supply chain services.  

When Inc42 featured it in the February 2022 list of 30 startups, Goldsetu was in the pre-revenue stage. Since then, the startup has added a B2B procurement channel for its 5K+ retail partners (up from 300+ from its time of listing), enabling them to source materials, parts and products from pan-India vendors. The startup claims that more than 2.2K retailers are actively procuring through its B2B website.

The SaaS player also acquired the B2B jewellery ecommerce firm BuymyJewel for an undisclosed amount for a deeper foray into the B2B space and raised seed funding of $1.1 Mn in October 2022. A month later, it claimed to have clocked INR 3.8 Cr in revenue from its usage-based transaction fee and said it was on track to reach INR 5.2 Cr in December.

Goldsetu has ambitious plans for 2023, including launching and scaling up a supply chain credit product. It will also expand its presence in four states to earn monthly revenue of $10 Mn.

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Kosh

Loan Disbursals Up 2x, IM Feature Drives Customer Retention By 30%

When we featured Gurugram-based Kosh in July 2022, the lending tech startup for blue-collar workers used to process INR 4 Cr worth of loans every month. But by November 2022, the amount nearly doubled to INR 7 Cr. 

Meanwhile, Kosh also launched an instant messaging feature on its Android app, enabling borrowers to communicate with the team or use its channels to find financial solutions. One of these channels focusses on job search, an instant crowd-puller, upping customer retention by 30%. 

The startup onboarded new B2B clients such as SIS, GarageWorks and Numer8 to help their workers with loan assistance. It also tied up with new NBFCs such as Apollo Finance, Arvog Finance and Arthmate to expand its loan portfolio. 

Kosh plans to 5x its monthly loan disbursal to INR 35 Cr by the end of 2023. It is also working on more features within the IM (Kosh Chat) to help users with lending, savings and job searches to grow its operations.

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Moneyboxx Finance

Active Customer Base Doubles, Loan Disbursals Grow 184%

Lending tech platform Moneyboxx was featured in Inc42’s January edition and achieved new milestones throughout the year. To begin with, the Mumbai-based startup, which provides unsecured loans in the range of INR 70K-3 Lakh, disbursed total loans worth INR 155 Cr to 22K+ customers in 2022. Among these borrowers, 45% were women entrepreneurs, and 35% were new to credit, the startup said.

Its active customer base more than doubled to 19K+, and YoY loan disbursements grew 184%.

Moneyboxx claims an AUA of INR 200 Cr and a network of 50 branches across six states. It also raised INR 35 Cr in equity funding in June from undisclosed investors to grow its operations. Besides, it signed lending partnerships with the SBI, Tata Capital, two more NBFCs and a small finance bank (details were not provided in these cases) to grow its AUA.

The digital lender eyes an AUA of INR 350 Cr by the end of the current financial year and plans to reach INR 1K Cr by March 2024. It will also double its branches by the end of 2023.

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Oben Electric

After 17K+ Bookings, Oben To Kickstart 2023 With Deliveries, 4 More EV Launches

One of the early movers in the electric motorcycle space in India, Oben Electric was listed by Inc42 in March 2022. At the time, the startup had just announced its flagship EV2W Rorr. But throughout the year, it had seen significant traction and 17K+ bookings across India, the UAE, Germany, the UK and a slew of other Southeast Asian countries.

The Bengaluru-based EV startup bagged $4 Mn in an extended pre-series A round with plans to raise $50 Mn in Series A for further research and four more product launches. Using the money from the previous round, it will fulfil existing orders, ramp up production capacity and expand its distribution network. Rorr deliveries are scheduled to start in the first quarter of 2023.

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Plix Life

New Products Among Best-Sellers, Sales Jump 3x

In the past year, personal care brands offering vegan (cruelty-free) and eco-friendly products caught the attention of ‘woke’ customers and led to the growth of D2C startups like Mumbai-based Plix Life. Featured in Inc42’s January list, this one specialises in plant-based offerings, including women’s health, wellness and weight loss products and workout supplements. 

The brand has now launched hair care and skin nutrition categories for all, resulting in a 3x rise in sales. Its new product range includes ingestible sunscreens, hair growth supplements and topical and drinkable skincare products. Plix has also introduced dermatologist-tested vegan hair growth serums, which are the highest-selling products, the company claims. 

Plix sells 60+ SKUs under six categories via its website, online marketplaces and retail stores, and its customer base has grown to 1.5 Mn+ in the past year.

The startup eyes an ARR of INR 180 Cr by March 2023 and aims to reach INR 350 Cr in annual revenue by the end of the year. It will grow its wellness and personal care range in 2023 and retail its products through 10K+ stores.

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Poshn

From $100 Mn To $1 Bn ARR: Poshn’s Ambitious Supply Chain Play

New Delhi-based Poshn focusses on fixing a broken supply chain, making sales and procurement easy for farmers and institutional buyers, respectively. Since it was featured in May, the two-year-old agri supply chain startup expanded its offerings beyond food grains and added new categories, including dry fruits, milk and wood pulp.

Poshn offers 1K+ products, caters to 400+ pin codes and currently works with more than 500 wholesalers. It has partnered with major institutional buyers such as Jubilant FoodWorks, Swiggy, Blinkit, Dunzo, Reliance Retail and more. 

The startup claims 5x revenue growth YoY, while the new categories account for 30% of its topline. It eyes an annual run rate of $100 Mn in FY23 and has recently raised $2 Mn in venture debt from Alteria Capital to reach $1 Bn in ARR in the next financial year.

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Recur Club

This B2B Lending Startup Claims INR 3K Cr AUA, 2.5x Growth In User Base

Amid a lull in equity funding, SaaS and D2C businesses with recurring revenues are increasingly opting for revenue-based financing to meet their capital requirements. New Delhi-based Recur Club is a trading platform that helps recurring revenue companies trade their contracts/subscriptions to raise quick and hassle-free funding.

When Inc42 listed it in March, it backed 400+ companies which traded their recurring subscription revenue for upfront capital. By December 2022, Recur Club’s customer base grew by 2.5x to 1K+. It also claimed INR 3K Cr worth of assets under administration (AUA), growing at 200% MoM. 

In April, the fintech startup raised $30 Mn from InfoEdge Ventures and others to launch its operations in the US and Singapore. It also partnered with IVY Growth Associates to allocate up to $10 Mn to the VC fund’s portfolio companies. Recur Club plans to fund 500 IVY-backed startups in the next few years. It also aims to reach more than 2K customers in 2023 and increase its AUA to $1 Bn.

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SALT

A Neobank Helping 300+ Businesses Expand Globally

Bengaluru-based neobank SALT aims to make global expansion easy and affordable for everyone, a concept widely lauded when the business was featured in Inc42’s fintech edition in June. 

The startup has three focus areas – inward remittance (peer-to-peer and peer-to-merchant), investment inflow to India and overseas business expansion. Although it did not provide growth details regarding the first two segments, SALT worked with 300+ Indian companies between June and December, enabling them to scale up their operations in more than 50 countries. 

It has also created communities on WhatsApp and Telegram to help small businesses understand how to run international operations. Additionally, it plans to more than double the number of partner companies in 2023. 

Between 2023 and 2025, SALT will expand its use cases to make P2P and P2M remittances as easy as using UPI, offer cross-border banking solutions and automate compliance procedures.

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Solv

Serves 273K+ MSMEs, Revenue Grows 5x YoY

Indian MSMEs often struggle to access growth capital and tap into potential customer base due to the lack of technology adoption. With an e-marketplace stack and a bouquet of financial and logistics solutions in place, Bengaluru-based Solv has addressed the pain point and serviced 273K+ MSMEs since its launch in 2020.

When we listed the startup in April 2022, Solv worked with 200K+ micro-entrepreneurs and planned to add another 100K by the end of the calendar year. Backed by Standard Chartered, it has now expanded its offerings to ‘softline’ businesses, those specialising in ‘soft’ goods such as apparel, footwear, fashion accessories and home furnishings. 

The B2B ecommerce startup has not disclosed its revenue but claims 5x YoY growth in 2022 through deliveries of 3 Mn+ bulk orders. 

In June 2022, it launched Solv Atom, an invoice financing service backed by 12 anchor and 12 FI partners, and also raised $40 Mn in Series A, led by SBI Holdings and SC Ventures.

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The June Shop

User Base Up 20% MoM; Revenue Jumps 1.5x

D2C home décor and lifestyle brand The June Shop made it to Inc42’s 30 Startup To Watch list in August 2022. At the time, it offered 7.5K products across 20+ categories, with home décor being its mainstay. In the past four months, the Kolkata-based startup added many new products to its line of iPhone covers, planners and journals, leading to a 2x jump in orders and a 1.5x increase in revenue. 

It also upgraded its website and servers to ensure ease of use, which upped the conversion rate by 30% and helped drive the daily traffic to 200K.

The June Shop claimed 20% MoM growth in user base and an average increase of 35% in the MoM sales of new products. The D2C startup saw a big surge during its Black Friday Sale in November, followed by a strong December marked by the sales of journals and planners.

In 2023, the brand aims to introduce more lifestyle products designed in-house and expand its customer base by adding sustainable, made-in-India products.

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Traya Health

Servicing 2 Lakh+ Users, Clocking 20% Revenue Growth Month Over Month

Traya was covered in the May 2022 edition, but the Mumbai-based haircare brand added many categories and products since then to improve the overall efficacy of its offerings. These include a night lotion for those suffering from dandruff, seborrheic dermatitis (scaly scalp and skin) and psoriasis; a range of products to prevent hair loss in women and an ayurvedic range of gut health products to address issues like chronic constipation, acidity and bloating (these can also trigger hair loss).

In December 2022, the brand started selling on Amazon India, where its hair vitamin is one of the best-rated products. Sales of the hair vitamin product alone resulted in a revenue of INR 30 Lakh for the startup. 

Traya claims to have treated more than 2 Lakh Indians since its inception in 2019 (1 Lakh customers signed up in May-December 2022) and increased its team size from 60 to 200.

Overall, the D2C brand saw 20% revenue growth month over month, with more than 50% coming from repeat customers. Also, 40% of its revenue came from product sales sans any marketing spend compared to 10% in May. 

Going forward, Traya will develop solutions to improve hair quality. A line of ayurvedic products is also on the cards to address the nutritional needs of women to cope with the postpartum phase, menopause, PCOD, anaemia and more. Plus, it will develop an app to help users round the clock. It also acquired a U.S. company (name not disclosed) to expand its global reach in 2023.

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What’s Up Wellness

Top-Selling Products Trigger 50% MoM Revenue Growth, 35% Repeat Buying

D2C wellness brands have thrived in the wake of the pandemic due to their focus on holistic healing. After getting listed in August, this Kolkata-based startup launched sleep gummies to aid muscle relaxation and pain recovery. These FDA-approved gummies are designed to regulate sleep cycles and contain muscle and nerve relaxants to help users wake up feeling refreshed and energised.

The sleep gummies have gained significant traction, ranking among the top four sleep supplements on Amazon India in less than two months of their launch. The startup recently started selling on Nykaa and claimed more than 35% repeat purchases and gross monthly revenue of INR 50 Lakh as it recorded 50% MoM growth.

The brand also raised an angel round, but the details were not disclosed. 

What’s Up Wellness targets an annual revenue run rate of INR 18 Cr in 2023 and plans to launch 10 more products in two new categories. As part of its ESG activity, it donated 1% of its revenue through Give India to fund 60 girls under the Every Girl In School programme.

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ZFW Dark Stores

Post-Pivot, Serving 60+ D2C Brands, Clocking $60K MRR

After pivoting from the logistics business in late 2021, Delhi-based ecommerce enabler ZFW Dark Stores launched same-day intercity delivery service for D2C brands and other ecommerce businesses. Inc42 featured it in January, post which it added 50 more D2C clients from five markets – Delhi-NCR, Mumbai, Pune, Bengaluru and Hyderabad. In fact, it forayed into the last two markets in 2022 alone.

The startup clocked 20% MoM growth in order volume and currently serves more than 60 D2C brands, with the monthly recurring revenue (MRR) at $60K. Additionally, it signed contracts worth $100K with a host of brands, which will be launched by March 2023.

It recently partnered with ZYPP Electric to incorporate EVs in its fleets and move towards a sustainable delivery system. It already has a fully electric fleet in Delhi-NCR. 

ZFW closed two funding rounds: $1.2 Mn in a seed round and an undisclosed amount in pre-series A from South Asia Technology Partners, RiSo Capital, SEA Fund and many angel investors. The money raised will be utilised for pan-India expansion, including major state capitals, tech investments and growing its brand portfolio to 200 by 2023.

Edited By Sanghamitra Mandal