Funding · Commerce & Consumer Brands

Zepto in talks to raise $100-125M at $550M valuation

By Startup Enthusiast · 11 November 2021

What they do

Zepto delivers groceries and FMCG products within 10 minutes in select areas of Mumbai, Bengaluru and Gurugram

The company is in talks to raise $100-125 million in a new round at a valuation of about $550 million

The quick-commerce space in India is heating up with Grofers, Dunzo and Swiggy Instamart all expanding rapidly

Zepto is in talks to raise $100-125 million at a valuation of about $550 million.
The company had earlier raised a $60 million Series B round led by Glade Brook Capital, Nexus Ventures, Y Combinator, Global Founders Capital and angels.
So far $42.57 million of the Series B has been received from 9 investors, with the remaining ~$18 million expected soon.
Glade Brook Capital led the Series B with $22.5 million.
Nexus Ventures invested $7.3 million, Lachy Groom invested $6.7 million, and Contrary Capital invested $2.12 million in the Series B.
Global Founders Capital invested $2.5 million, and Ravi Inukonda and Nilam Ganenthiran collectively invested $15,000.
The post-money valuation after the Series B was ~$227 million.

The on-demand grocery delivery segment is hot in India, with the 10-minute model gaining momentum.
Grofers pivoted to 10-minute delivery, Dunzo scaled, and Swiggy Instamart expanded to multiple cities.
Similar quick-delivery euphoria was seen in 2014-16 but many startups like Peppertap failed due to poor unit economics.
Western quick-commerce startups also raised large rounds: Turkey's Getir raised over $1.1 billion in 2021, and Germany's Gorillas was valued at $6 billion.

Zepto delivers groceries and FMCG (fast-moving consumer goods) products within 10 minutes.
It started in Mumbai and has expanded to Bengaluru and Gurugram in select locations.
The company operates through dark stores (small warehouses dedicated to fulfilling online orders quickly).
The new fundraise is intended to cover over a dozen cities with dark stores.

The new fundraise is intended to cover over a dozen cities with dark stores.

Glade Brook Capital (lead) — Led the Series B round with $22.5 million and holds 10.43% post-Series B.
Nexus Venture Partners (participated) — Invested $7.3 million in Series B and is the biggest stakeholder with 20.86% post-Series B.
Lachy Groom (participated) — Invested $6.7 million in Series B.
Contrary Capital (participated) — Invested $2.12 million in Series B.
Global Founders Capital (participated) — Invested $2.5 million in Series B.
Y Combinator (participated) — Owns 5.07% post-Series B.
Ravi Inukonda and Nilam Ganenthiran (angel) — Collectively invested $15,000 in Series B.

Product: A rapid-delivery app for groceries and everyday essentials.
Customers: Consumers ordering groceries and essentials online.
How it makes money: It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
What sets it apart: It was built as a quick-commerce native company from day one.
Operations: Operates dark-store based 10-minute delivery across multiple Indian cities.