Funding · Commerce & Consumer Brands

Zepto raises $200 million at $1.4 billion valuation

By Startup Enthusiast · 25 August 2023

What they do

Zepto is a quick commerce delivery platform operating in seven Indian cities, offering on-demand delivery of groceries, fruits, and vegetables

The company raised $200 million in a Series E funding round led by StepStone Group, with participation from Goodwater Capital and existing investors

Zepto's valuation has increased to $1.4 billion, up from $900 million in its previous round, and it is now India's newest unicorn

Zepto, a quick commerce delivery platform, raised $200 million in a Series E funding round, taking its valuation to $1.4 billion.
The round was led by StepStone Group, with participation from Goodwater Capital and existing investors including Nexus Venture Partners, Glade Brook Capital, and Lachy Groom.
Zepto has raised over $560 million to date, with its valuation increasing from $900 million in its Series D round in May 2022.
The company operates in seven cities, including Delhi NCR, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, and Chennai.
Zepto plans to deepen its presence in existing cities rather than expanding to new ones.
The company reported a 10-fold jump in revenue in FY23, with a monthly average revenue run rate of around Rs 400 crore.
Zepto aims to achieve $1 billion in annualised sales within the next few quarters and plans to go public in the next two years.

The funding round marks Zepto as India's newest unicorn, following a period of reduced unicorn activity in the Indian startup ecosystem.
Zepto's focus on execution, frugality, and customer-centricity has contributed to its success in the competitive quick commerce space.

Zepto is a quick commerce delivery platform that offers on-demand delivery of groceries, fruits, and vegetables.
The company operates in seven cities across India, including Delhi NCR, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, and Chennai.
Zepto's top three markets in terms of sales are Mumbai, Bengaluru, and Delhi NCR.
The company has a monthly average revenue run rate of around Rs 400 crore and reported a 10-fold jump in revenue in FY23.
Zepto is working on building one of the best supply chain product stacks in the country and is investing heavily in customer-facing products.

Zepto plans to go public in the next two years after becoming a profitable startup in its segment.
The company aims to achieve $1 billion in annualised sales within the next few quarters.
Zepto is working on transitioning to an all-electric vehicle fleet through a partnership with Yulu.

StepStone Group (lead) — A venture capital firm that led Zepto's Series E round.
Goodwater Capital (participated) — A venture capital firm that participated in Zepto's Series E round.
Nexus Venture Partners (existing) — An existing investor in Zepto.
Glade Brook Capital (existing) — An existing investor in Zepto.
Lachy Groom (existing) — An existing investor in Zepto.

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.