Zepto, a grocery delivery service, raises $200 million, becoming the first unicorn

Zepto, an online grocery delivery service, raised $200 million in a Series-E fundraising during the financing winter, making it the first unicorn of 2023 and valuing the business at $1.4 billion.

StepStone Group, a US-based private markets investment business, was in charge of raising the money. Additionally, this is the first direct investment by StepStone Group in an Indian business. Zepto received special advice on the transaction from Avendus Capital.

A new investor in the round was Goodwater Capital, a venture capital company with a consumer-focused emphasis located in California.

Investors that have invested in Zepto, including Nexus Venture Partners, Glade Brook Capital, Lachy Groom, and others, increased their commitment with significant follow-on investments.

The change occurs as Dunzo and other platforms for speedy delivery are struggling to make ends meet.

“Zepto’s best-in-class operational discipline is validated by this fundraising, which took place in the middle of the worst slump in the financial markets in more than a decade. With the majority of its dark shops being completely EBITDA positive, Zepto has shown the viability of the fast commerce business model. Zepto’s burn has dramatically decreased, and if things continue in this direction, the firm will completely achieve EBITDA profitability in 12 to 15 months. More significantly, Zepto has maintained its fast growth while delivering these profitability metrics, the business claimed in a statement.

The company’s revenues have increased by 300% year over year, and it expects to reach $1 billion in annualized sales within the next quarters.

Aadit Palicha, co-founder and CEO of Zepto, commented on the trend, saying, “This company is about execution, and we are successful because our execution is strong. Although profound frugality and customer worship have helped us get here, there is still plenty for us to do. It seems like this is only the beginning since we are trying to create a generational firm.

Within the next three quarters, the firm will probably reach $1 billion in annualized revenues after increasing sales by 300% year over year.

Zepto, a company founded in 2021, ultimately delivers over 6,000 supermarket items in 10 minutes through a nationwide network of delivery hubs.