Funding · Commerce & Consumer Brands

Zepto raises $200 million in Series D round at $900 million valuation

What they do

Zepto is a 10-minute grocery delivery platform based in Mumbai

The company raised $200 million in a Series D round, reaching a $900 million post-money valuation

The funding will help Zepto compete with other grocery delivery services like Swiggy Instamart and BlinkIt

Zepto, a 10-minute grocery delivery platform, raised $200 million in a Series D round.
The round was led by Y Combinator Continuity, with new investor Kaiser Permanente joining.
Existing investors Nexus Ventures, Glade Brook, and Lachy Groom also participated.
The company reached a $900 million post-money valuation after the raise.
This is the third startup to fall short of a $1 billion valuation after Turtlemint and Rapido.

The $200 million raise brought Zepto's total funding to $360 million.
The company had previously been valued at $570 million in its last round.
Zepto's co-founder and CEO, Aadit Palicha, said the company's burn rate has decreased 5X per order.
Zepto reported 800% Q-o-Q revenue growth but did not provide further details.

Zepto delivers groceries, fresh produce, and instant cafe items like coffee, chai, and bakery products.
The company operates in a highly competitive market with rivals like Swiggy Instamart, Dunzo, and BlinkIt.
Swiggy has announced a $700 million investment in its quick grocery service, Swiggy Instamart.
Zomato is likely to invest more in BlinkIt, which it may acquire.
The concept of 10-minute grocery delivery has gained traction in the US and West post-pandemic.

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.