Zepto has expanded beyond Mumbai by launching in Bangalore, Delhi, Gurgaon, Chennai, Hyderabad and Pune – with Kolkata soon to follow.
Just 5 months after launching, 10-minute grocery delivery app, Zepto, has announced its $100M Series C fundraise. Y Combinator’s Continuity Fund leads the round, with participation from new and existing investors, including Glade Brook, Nexus, Breyer Capital, Lachy Groom, Global Founders Capital, Contrary Capital, and more. This Series C round comes just 45 days after the Company announced its $60M fundraise in November.
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 by launching in Bangalore, Delhi, Gurgaon, Chennai, Hyderabad and Pune – with Kolkata soon to follow.
Co-Founder & CEO, Aadit Palicha says, “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. Suffice it to say, I’m excited about what’s to come.”
Zepto has set up offices in all major Indian cities, with its Corporate Headquarters in Mumbai and Engineering/Product Office in Bangalore. The Company’s Leadership includes senior executives and operators from Flipkart, Uber, Dream11, Pharmeasy, PepperFry, and Amazon – to name a few. With this injection of capital, Zepto plans to expand coverage across multiple cities in India and scale its team rapidly and is currently hiring across all functions, including operations, supply chain, marketing, finance, product, engineering, and human resources.
Co-Founder & CTO, Kaivalya Vohra mentions, “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). 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.”
On the investment, Anu Hariharan from Y Combinator comments, “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. They originally launched with a different model, swiftly pivoted to quick commerce in August 2021 and are now adding 100,000 new installs a 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. Simply put, we’re confident Zepto will win in this space over the long-term.”
Source: Business World