Posted by Mumbai: A 10-minute grocery delivery app Zepto has raised $100 million in Series C funding from Y Combinator’s Continuity Fund and others. With this fundraising, Zepto’s valuation has doubled to $570 million.
Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and others also participated in this funding round as well. This Series C funding comes just 45 days after the startup announced its $60 million fundraise in November.
With this fresh funding, Zepto plans to expand coverage across multiple cities in India and scale its team rapidly. It is currently hiring across all functions, including operations, supply chain, marketing, finance, product, engineering, and human resources.
Besides the fundraise, Zepto has been growing incredibly quickly and is tripling its user-base every month. Over the past 2 months, Zepto has expanded beyond Mumbai and added Bangalore, Delhi, Gurgaon, Chennai, Hyderabad and Pune to its list. It will also launch its services in Kolkata very soon.
“Investors are consistently choosing to back Zepto because of our best-in-class execution. This is giving us incredible momentum – 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,” said Zepto Co-Founder and CEO Aadit Palicha
Zepto has set up offices in all major Indian cities, with its corporate headquarters in Mumbai and engineering cum product office in Bangalore.
“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% with an 88-point Net Promoter Score (NPS),” said Co-Founder and CTO, Kaivalya Vohra.
“This data has given us the confidence to expand the 10-minute model across the country. In just 5 months, we’ve launched 100 micro-warehouses – each of which has the capacity to do 2,500+ orders/day – and we’re planning to launch at an even faster rate going forward,” added Vohra.
“We are excited to double down and lead this round in Zepto (YC W21). Since Aadit and Kaivalya went through Y Combinator, we have observed that they’re exceptional founders who bring relentless focus and “Doordash-like” execution to the quick commerce model,” said Anu Hariharan from Y Combinator.
“They originally launched with a different model, swiftly pivoted to quick commerce in August 2021 and are now adding 100,000 new customers every week, 60% of them women. Their attention to detail on the logistics experience is unparalleled and this has enabled them to scale to most major metros in just 5 months,” added Hariharan.