Zepto raises $200 million at $900 million valuation
We posted 800% QoQ revenue growth while burn has come down 5X on a per-order basis: CEO Aadit Palicha
Zepto, the 10-minute delivery service startup, raised $200 million in its Series D funding, valuing the company at around $900 million.
"Y Combinator Continuity doubled down and led Zepto's Series D with new investor - Kaiser Permanente - joining in to back the company," according to an official statement.
All key existing investors including Nexus Venture Partners, Glade Brook Capital and Lachy Groom have increased their investments,the statement added.
"We posted 800% Q-o-Q revenue growth while burn has come down 5X on a per-order basis," says Aadit Palicha, Co-Founder & CEO, Zepto. "Our team achieved this while continuing to delight our customers. We maintained a phenomenal 88-Point NPS and 60 percent Month-1 Buyer Retention at scale. This unbelievable execution over the past few months has made it clear to investors that Zepto will be one of the winners in Indian Q-Commerce."
The company team has increased to over 1,000 people, and it continues to hire across all functions including engineering, analytics, operations, marketing, finance, and HR.
"Our rigorous focus on unit economics is the main reason why we've had such an amazing trajectory as a company," adds Kaivalya Vohra, Co-Founder & CTO, Zepto. "We've turned micro-markets profitable and brought down burn significantly while growing to a scale of hundreds of thousands of orders per day."
Zepto currently operates across the top 10 markets of Mumbai, Delhi, Bangalore, Chennai, Hyderabad, Gurgaon, Pune, Noida, Kolkata and Ghaziabad with more than 80 percent coverage in these cities. "Each of our stores cover a radius of 2-3 kms. The plan is to further expand across major cities in India," a spokesperson said.
Launches Zepto Cafe
Zepto is also piloting a service to deliver coffee, chai, and other café items in 10 minutes across select areas in Mumbai. The new category - Zepto Café - "is being received quite well by early customers, and if the pilot continues to go well, Zepto plans to scale this service across India soon."
Just nine months after launch, Zepto has raised $360 million from marquee investors in Silicon Valley and India. Palicha and Vohra dropped out of Stanford to build Zepto, which is consistently delivering 3,000+ products in 10 minutes.