India’s Instant grocery delivery startup Zepto has raised $200 million in its Series D round. The funding round was led by the existing backer Y Combinator and also saw the participation of key existing investors including Nexus Venture Partners, Glade Brook Capital, Contrary Capital, and Lachy Groom. The company is now valued at $900, up from the $570 million it was valued in the Series C round.
Zepto was founded by Aadit Palicha and Kaivalya Vohra back in April 2021. The company promises 10-minute grocery delivery and is operational in 11 cities across India. It has raised around $360 million to date.
The company claims that it has consistently grown by over 50% each month in recent months and grew its revenue by 800% in the most recent quarter while cutting down its expenses per order more than five times.
The fresh funds will be used to expand the operations to more cities in India and add more dark stores to the network. The company will also grow its product and tech teams in different roles including engineering, analytics, operations, marketing, finance, and human resources.
Zepto competes against well-capitalized rivals such as BigBasket, BlinkIt, Swiggy, and Dunzo. All these companies are burning big cash to grab the market share.
The quick commerce segment was estimated to be a $30 million market and is expected to reach $5 billion in 2025. This is the reason why most investors are ready to burn their cash.
