Quick commerce start-up Zepto near to be a Unicorn with its recent funding round valuing company at $900 million led by Y Combinator Continuity with Kaiser Permanente.
On Tuesday, May 3, Mumbai-based Quick Commerece Grocery and other essentials delivery startup announced raising funds worth $200 Million, valuing startup ~$900 Million (About Rs.6,900 crores), taking it closer to becoming second youngest Unicorn within 9 months of its launch after Mensa Brands.
About the Company: Zepto is a Mumbai-based 10-minute grocery delivery startup, founded by two 19-year old Stanford University dropouts - Aadit Palicha and Kaivalya Vohra. Company believes not in rushing towards the customers but choosing shorter routes. Startup despite being just nine months old is on its way to becoming one of the youngest Unicorns. It was only in December 2021 that the startup raised $100 Million as its Series C funding at a valulation of nearly $570mn.
In an interview with daily news, Palicha said “During the last quarter we posted 800 per cent quarter on quarter (QoQ) revenue growth, while burn has come down 5X on a per-order basis. Our team achieved this while continuing to delight our customers. We maintained a phenomenal 88-Point NPS and 60 percent Month-1 Buyer Retention at scale. This unbelievable execution over the past few months has made it clear to investors that Zepto will be one of the winners in Indian Q-Commerce,”
Investors: Through its aggressive approach and never ending commitment in this fast growing segment, it attracted funding from various Venture Capitals, viz. Nexus Venture
Partners, Glade Brook Capital, Lachy Groom. Valuation red was led by Y Combinator Continuity and another new investor, Kaiser Permanente inclusing participation from existing investors.
Usage for Funding: In an interaction with e-news website, Founders mentioned in the next few months, Zepto wants to enter at least 10 new locations outside of the metros. Palicha mentioned "We are looking pretty good with the expansion plan, and we are opening a new dark store almost every 48 hours,". Other than goegraphical expansion, funds will be used for recruiting new people across various departments which already has 1000 people as of now, like engineering, analytics, operations, marketing, finance, and HR and R&D of new products and services.
Startup mentioned that it has begun piloting a service for delivery of Chai and Coffee in 10 minutes in select areas of Mumbai and is aiming to expand this service to other parts of
the country called 'Zepto Café' and has already received tremendous response from the customers.
Competitors: Owing to Zepto's well laid out funding plan, customer-oriented product development, innovative methods to cut down upon delivery time, the young startup has posed as a strong competition to Blinkit, Swiggy, dunzo, BigBasket, and Shadowfax.
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