Zepto, a grocery delivery start-up that promises deliveries within 10 minutes, has raised USD200 million in funding, led by Y Combinator. This propels the company’s valuation to almost USD900 million, within 9 months of operations. The grocery delivery startup is now a leader in India’s fast growing quick-commerce segment.
The new funding round came just five months after the company previously raised capital, and saw the participation of new investor Kaiser Permanente. Early investors in the company include Nexus Venture Partners, Silicon Valley investor Lachy Groom and Glade Brook Capital. All these investors have increased their initial investments, according to a statement by the company. Zepto’s total funding now stands at USD360 million.
Zepto, which has been named after the miniscule unit of time, was started by two friends Aadit Palicha and Kaivalya Vohra. Both dropped out of a Stanford University computer science program and returned to India to start their own venture, Zepto, aimed at delivering grocery products within 10 minutes. Both the friends are 19 years old.
Fast grocery delivery a growing market
India boasts a USD1 trillion retail market, which is currently dominated by Amazon.com and Flipkart, both of whom are established players in the market. The startup is rapidly gaining recognition for its 10-minute delivery service for groceries.
The company has achieved an 800 percent growth of revenue quarter-on-quarter, and has reduced its cash burn by five times on a per order basis, according to a statement by Chief Executive Officer, Palicha.
The startup’s team has grown to over one thousand people, and has begun to make profits in micro-markets of dense city neighborhoods served by warehouses or ‘dark stores’ as they are popularly known.
The company is now piloting a service to deliver coffee, tea and other cafe items within 10 minutes in select areas in Mumbai in a new service it has named ‘Zepto Cafe’.
Zepto is one of the fastest growing grocery delivery startups in India today. Just 6 months after launching, the company has raised $160 million from established investors in Silicon Valley and India.
The founders of the startup, Aadit Palicha and Kaivalya Vohra, dropped out of Stanford University to build the company in India. Together, they’ve created an incredibly strong team, with Senior Executives from Uber, Flipkart, Dream11, Pepperfry, and Pharmeasy.
The magic of Zepto is its ability to consistently deliver over 2,500 grocery products in 10 minutes flat. It’s the core of what Zepto does, and the reason why it has been able to grow so fast with tremendous customer appreciation. Zepto’s mission is simple: to make 10-minute delivery the new normal.