Zepto has enhanced its sales value up to 300% YoY and targets to reach US$1 billion this year’s next quarter.
Heaptalk, Jakarta — India’s instant grocery delivery startup Zepto has bagged US$200 million USD200 million in a Series E round. This new injection has elevated the startup valuation to US$1.4 billion, making Zepto the first Indian company to reach the unicorn level in 2023.
According to the company, this round is led by StepStone Group, LP. Furthermore, several existing investors also back this round, spanning Nexus Ventures Partners, Glade Brook Capital, and Lachy Groom. Zepto startup intends to utilize the funds to further deepen into the seven areas, including Delhi, Mumbai, and Bengaluru.
Prior to this investment, Zepto was last valued at US$900 million in a funding round in May last year. The investment comes when the vast majority of instant delivery startups which collectively raised more than US$10 billion, such as Gopuff, Jokr, Getir, Gorillas, Instacart, etc. have significantly curtailed their operations or shut down entirely and experienced significant decrease in valuations.
In response to the funds, the CTO of Zepto, Kaivalya Vohra, said that the fresh injection comes amid Zepto’s focus on profitability as this quick commerce startup aims to turn profitability in the next 15 – 15 months. To achieve this intention, Vohra affirmed that the most significant factor of the increase in profits was based on technology and products.
“Even with this capital, we want to maintain our discipline, avoid complacency, and push hard to hit EBITDA positivity. In that journey, the most significant drivers of P&L improvement for us are based on technology and product. We are building one of the best supply chain product stacks in the country today, and we are investing heavily in customer-facing products as well,”
The startup is establishing one of the country’s most outstanding supply chain product stacks and investing in customer-facing products. As its further plan, has This startup has reduced its cash burn significantly and plans to go public by 2025. In its business growth, the startup has enhanced its sales value up to 300% YoY and targets to reach US$1 billion in the coming quarter this year. Also, this startup has traded and delivered numerous goods, from grocery items to electronic gadgets, with more than 300,000 daily orders in seven Indian cities.
