Grocery delivery firm Zepto has become India’s first unicorn of 2023 after raising $200 million in a Series E funding round.
The Mumbai-based startup’s valuation now stands at $1.4 billion, making it one of the most valuable grocery delivery firms in the country. Zepto’s latest round of funding was led by US-based private equity firm StepStone Group. Zepto was founded in 2018 and has quickly become one of India’s leading online grocery delivery firms.
The company offers a wide range of products, including fresh produce, dairy, and household essentials. Zepto’s success in the highly competitive Indian market can be attributed to its focus on customer service and its ability to offer competitive prices.
The latest round of funding will be used to expand Zepto’s operations and improve its technology. The company plans to use the funds to increase its product offerings, improve its delivery network, and enhance its mobile app.
With its latest funding round, Zepto is well positioned to continue its growth and become a major player in the Indian grocery delivery market.
Zepto’s Journey to Unicorn Status
Zepto, an Indian grocery delivery startup founded in 2021 by two Stanford University dropouts, has become India’s first unicorn of 2023.
The company raised $200 million in a new funding round, bringing its valuation to $1.4 billion.
The funding was led by US-based private markets investment firm StepStone Group. Zepto’s rapid growth can be attributed to its unique selling point of delivering groceries in 10 minutes, which has proven popular with customers.
Despite the protracted slowdown in the Indian economy, Zepto has managed to thrive while other instant delivery startups have struggled. Kaivalya Vohra, Co-Founder and CEO of Zepto, has stated that the company plans to go public by 2025 as “a profitable, growing technology company that customers love.”
This shows the company’s confidence in its ability to continue its growth trajectory and maintain its unicorn status. Zepto’s success is a testament to the potential of Indian startups to disrupt traditional industries and create innovative solutions to meet the needs of consumers.
As the first unicorn of 2023, Zepto has set a high bar for other startups to follow and has demonstrated that there is still room for growth and investment in the Indian startup ecosystem.
Details of the Funding Round
Quick-commerce player Zepto has raised $200 million in a Series E funding round, becoming India’s first unicorn of 2023 with a valuation of $1.4 billion.
The funding round was led by US asset management firm StepStone Group, along with Goodwater Capital, who joined as a new investor.
Existing investors Nexus Venture Partners, Glade Brook Capital, and Lachy Groom also participated in the funding round. According to Aadit Palicha, the co-founder and CEO of Zepto, the new funds will be used to expand the company’s operations across India and to hire more employees.
The company aims to increase its presence in tier-II and tier-III cities in India, where it sees a significant growth potential for its business.
Zepto, which was founded in 2021 by two Stanford dropouts, promises to deliver groceries in 10 minutes and competes with SoftBank-funded Swiggy and Blinkit in the quick-commerce sector.
The company’s most recent valuation was $900 million in May 2022 when it raised $100 million in a funding round.
The latest funding round marks a significant milestone for Zepto, which has become India’s first unicorn of 2023. The company’s success highlights the growing demand for quick-commerce services in India, where consumers are increasingly looking for faster and more convenient ways to shop for groceries and other daily essentials.
Financial Performance and Future Projections
Zepto, the Indian grocery delivery startup, has recently become the first unicorn of 2023 in the country after raising $200 million in a funding round. The company’s financial performance has been impressive, with its valuation reaching $1.4 billion. This section will take a closer look at Zepto’s financial performance and future projections.
Sales and Revenue
Zepto has been experiencing rapid growth in sales and revenue since its inception.
The company’s monthly revenue has been increasing steadily, and it is expected to continue to do so in the future. Zepto has also been able to achieve $1 billion in annualized sales, which is a significant milestone for the company.
Burn and Cash Flow
Zepto has been burning cash to fuel its growth, which is typical for startups in their early stages. However, the company has been able to manage its cash burn effectively, and it has been able to raise funds to support its growth.
The recent funding round has enabled Zepto to continue investing in its operations and expand its services to more cities in India.
Profitability and EBITDA
Zepto is not yet profitable, but it is working towards achieving profitability in the future.
The company’s EBITDA has been improving, and it is expected to become EBITDA positive in the near future. Zepto’s focus on P&L improvement is expected to contribute to its profitability in the long run.
Future Projections
Zepto’s future projections are optimistic, with the company aiming to become the leading grocery delivery platform in India.
The company plans to expand its services to more cities in the country and grow its network of dark stores. Zepto’s focus on ultra-fast commerce is expected to give it a competitive edge in the market.
In conclusion, Zepto’s financial performance has been impressive, and the company’s future projections are optimistic.
The recent funding round has enabled Zepto to continue investing in its operations and expand its services to more cities in India. Zepto’s focus on P&L improvement and ultra-fast commerce is expected to contribute to its profitability and growth in the long run.
