Zepto, a 10-second grocery delivery startup, has raised $200 million in funding at a valuation of $1.4 billion. This makes it India’s first unicorn of 2023 and the 108th unicorn in India overall.
Zepto was founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra. The company operates a network of micro-warehouses in urban areas, which allows it to deliver groceries within minutes. Zepto currently operates in seven Indian cities, including Mumbai, Delhi, and Bengaluru.
The company’s latest funding round was led by StepStone Group and Goodwater Capital. Existing investors Nexus Venture Partners, Glade Brook Capital, and Lachy Groom also participated in the round.
Zepto’s funding comes at a time when the quick commerce market in India is growing rapidly. The market is expected to reach $500 billion by 2025. Other players in the market include Blinkit, Grofers, and BigBasket.
Zepto plans to use the new funds to expand its operations to more cities and to develop new products and services. The company also plans to go public by 2025.
Why Zepto is a Unicorn
There are a number of reasons why Zepto has become a unicorn. First, the company has a strong team with a proven track record. The founders are both Stanford University graduates, and they have experience in the e-commerce industry.
Second, Zepto has a unique business model that is well-suited to the Indian market. The company’s micro-warehouses allow it to deliver groceries within minutes, which is a major advantage over traditional grocery stores.
Third, Zepto has seen strong growth since its inception. The company has raised over $300 million in funding, and it is currently operating in seven Indian cities.
The Future of Quick Commerce in India
The quick commerce market in India is still in its early stages, but it is growing rapidly. The market is expected to reach $500 billion by 2025. Zepto is one of a number of startups that are vying for a share of this market.
The future of quick commerce in India is uncertain. The market is still young, and there is no clear leader. However, the market is growing rapidly, and there is a lot of potential for growth.
Zepto is well-positioned to succeed in the quick commerce market. The company has a strong team, a unique business model, and strong growth. Zepto is one of the leading players in the market, and it is likely to continue to grow in the years to come.
In addition to the reasons mentioned above, Zepto has also benefited from the increasing popularity of online grocery shopping in India. A recent study by NielsenIQ found that online grocery sales in India grew by 70% in 2021. This growth is being driven by a number of factors, including the convenience of online shopping, the rising disposable incomes of Indians, and the increasing availability of smartphones and internet connectivity.
Zepto is well-positioned to capitalize on this growing trend. The company’s micro-warehouses allow it to deliver groceries within minutes, which is a major advantage over other online grocery retailers. Zepto is also targeting a younger demographic, which is more likely to adopt online shopping.
The quick commerce market in India is still in its early stages, but it is growing rapidly. Zepto is one of the leading players in the market, and it is likely to continue to grow in the years to come.
