After operating in stealth mode for six months, 10-minute grocery delivery platform Zepto on Monday announced series A fundraise of $60 million from Glade Brook Capital, Nexus, and Y Combinator, and angel investors, including Lachy Groom, Neeraj Arora, and Manik Gupta among others.
The fresh capital will be used for expanding the business nationwide. Post this round, the startup is valued at $225 million.
Zepto is expanding across Mumbai, Bengaluru and Delhi-NCR and will be launching in key areas across Hyderabad, Chennai, Pune and Kolkata in the next 30 days. With its Tech Office in Bengaluru and operations headquartered in Mumbai, the startup has also built a solid team to manage its pace of growth. Its management includes senior leaders from some of the nation’s largest startups, including Flipkart, Uber, Dream11, Pharmeasy, and Pepperfry to name a few.
Founded in 2021 by 19-year-old Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto operates on an optimized network of ‘cloud stores’ or micro-warehouses through which it can fulfil its promise of 10-minute delivery.
Kaivalya Vohra, Founder & CTO, Zepto, said, “Simply put, customers love a rapid delivery experience. The data speaks for itself – once we started delivering in 10 minutes, our NPS shot up and has constantly remained at around 85 with a 50%+ Week-on-Week user retention rate, which shows the incredibly strong customer love for our product.”
Aadit Palicha, Founder & CEO, added, “Q-Commerce in India is an opportunity of epic proportions and strong unit economics. We’ve been ignoring the noise and executing heads-down for a long time to perfect this model, and our efforts are paying off. Today, we’re consistently growing 200% every single month with an unstoppable team, robust product infrastructure, and deep access to institutional capital.”
Paul Hudson, CIO at Glade Brook Capital, said, “Quick e-commerce is poised to transform how many shop around the world. Zepto has emerged as a leader in India, with exponential growth and best-in-class execution. We look forward to partnering as Zepto brings a magical consumer experience across India.”