Zepto raises $100 million in funding from Continuity Fund, others; valuation doubles to $570 million
Zepto on Tuesday said it has raised USD 100 million (about Rs 757 crore) in funding from Y Combinators Continuity Fund and others, valuing the 10-minute grocery delivery platform at USD 570 million.
Zepto on Tuesday said it has raised USD 100 million (about Rs 757 crore) in funding from Y Combinator's Continuity Fund and others, valuing the 10-minute grocery delivery platform at USD 570 million.
Y Combinator's Continuity Fund led the round, with participation from new and existing investors, including Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and others, a statement said.
The Series C round came just 45 days after the company announced its USD 60 million fundraise.
According to the company, its valuation has doubled to USD 570 million.
With this injection of capital, Zepto plans to expand coverage across multiple cities in India and scale its team rapidly and is currently hiring across all functions, including operations, supply chain, marketing, finance, product, engineering, and human resources, it added.
Zepto said it has been growing quickly and is tripling its user base every month. Over the past two months, Zepto has expanded beyond Mumbai by launching operations in Bengaluru, Delhi, Gurugram, Chennai, Hyderabad and Pune - with Kolkata soon to follow.
"We're growing at a phenomenal rate, customers are loving the product experience, our core unit economics are strong, and we have one of the best startup teams in India today. Suffice it to say, I'm excited about what's to come," Zepto co-founder and CEO Aadit Palicha said.
Zepto has set up offices in all major Indian cities, with its corporate headquarters in Mumbai and Engineering/Product Office in Bengaluru.
"Delivering groceries in 10 minutes is a game-changing experience for customers, and it reflects in our strong product-market fit metrics. Today, our Month-on-Month Buyer retention is 65 per cent with an 88-point Net Promoter Score (NPS). This data has given us the confidence to expand the 10-minute model across the country," Zepto co-founder and CTO Kaivalya Vohra said.
Vohra added that in five months, the company has launched 100 micro-warehouses - each of which has the capacity to handle over 2,500 orders a day - and Zepto is planning to launch at an even faster rate going forward.
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