Zepto becomes India's first unicorn this year, raises $200 million funding at $1.4 billion valuation

An Indian startup, Zepto, a quick commerce, aka 10 minute delivery platform, has become India'sfirst unicorn of 2023 after raising $200 million at a valuation of $1.4 billion.

StepStone Ventures led the latest funding round, which alsoincludedparticipation from Goodwater Capital and previous backers such as Nexus Ventures, Glade Brook, and Lachy Groom.

Zepto was founded in 2021 by two 19-year-old Stanford dropouts and competes with SoftBank-backed Swiggy and Blinkit, all of whom are relying on speedy deliveries in the so-called quick commerce industry. Among them, Zepto's CEOAadit Palichaclaims to have the shortest average delivery time of 13 minutes.

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Zepto intends to utilisethe cash to expand further into the seven Indian metropolises where it is presently present, including Delhi, Mumbai, and Bengaluru, where it generates $50 million to $60 million in monthly income, according to Palicha.

"Operating in a bear market has forced us to be more disciplined. There is no question of growth or profit; it has to be both. The company is also planning an initial public offering in 2025", he said without giving further details to Reuters.

While Zepto is still losing money, the bulk of its "dark stores," or tightly packed warehouses, produce revenue, and the business expects to be profitable in 12–15 months.

When Zepto last solicited funding in May 2022, the company was valued at $900 million. According to a corporate statement, revenues have increased year on year and will reach $1 billion in annualised sales in the next quarter.

(Inputs from Reuters)

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