Instant grocery delivery business, Zepto, has secured $100 million in a funding round. The startup’s valuation has now reached over $500 million.
Two teenagers established Zepto, an instant grocery delivery startup, which has able to raise $100 million in a round of funding. The round led by Y Combinator led the round with which the company’s valuation has reached $570 million. This comes within five months after Zepto launched services in India’s red-hot quick commerce segment.
According to Aadit Palicha, co-founder and CEO, the startup’s latest investment comes 45 days after it earlier raised capital of $60 million at a $225 million valuation.
The current round included investments from new and previous backers, in addition to Y Combinator’s Continuity Fund. Those backers include Nexus Venture Partners, Breyer Capital, Glade Brook Capital Partners, and Silicon Valley investor Lachy Groom, according to a statement from the business.
Zepto, which gets its name from a microscopic unit of time, was founded by Palicha and his boyhood buddy Kaivalya Vohra, both 19.
The firm promises to deliver groceries and daily necessities in 10 minutes. After starting in Mumbai earlier this year, it has already expanded to Delhi, Bangalore, and four other cities.,
In India, a $1 trillion retail market where grocery purchases account for the majority of retail expenditure, online grocery delivery is taking off. Zepto’s competitors include Blinkit, Swiggy, and Dunzo, Amazon, and Flipkart.
Palicha stated in the statement that Zepto is rapidly expanding and that its core unit economics are solid.
Chief technology officer, co-founder Vohra, has called delivering within 10 minutes “game changing.” The fresh funding will help the Mumbai-based firm to expand its workforce and reach new markets.
The company operates 100 so-called dark stores, or micro-warehouses, in high-demand neighbourhoods, and it employs technology to conduct duties such as determining store sites, product placement, and mapping out delivery routes to avoid traffic congestion.
It now delivers over 2,500 items weekly. These items include fresh produce,snacks and beverages, kitchen basics, personal care goods, and house cleaning supplies.
According to Anu Hariharan, a partner at Y Combinator’s Continuity Fund, Zepto is attracting 1 lakh new customers every wee and the founders bring “Doordash-like” execution to the rapid commerce concept.