DELHI – Zepto, the Indian quick commerce company that delivers groceries and essentials within 10 minutes, has achieved a remarkable feat by becoming India’s first unicorn in 2023. The company has raised USD 200 million in a Series B round led by Tiger Global, with participation from existing investors Sequoia Capital India, Nexus Venture Partners, and others. The funding round values Zepto at USD 1.4 billion, making it the fastest Indian startup to reach the coveted unicorn status.
Zepto was founded in 2022 by former Flipkart executives Rajesh Kumar and Amit Singh, who saw an opportunity to disrupt the traditional grocery delivery market with a hyperlocal and tech-driven model. Zepto operates a network of micro-fulfillment centers across major Indian cities, where it stocks over 2,000 products ranging from fresh fruits and vegetables to dairy, snacks, beverages and household items. Customers can order these products through Zepto’s app or website and get them delivered to their doorstep within 10 minutes by Zepto’s fleet of electric bikes.
Zepto claims to have over 1 million active customers and a monthly gross merchandise value (GMV) of over USD 50 million. The company says it has achieved positive unit economics and is profitable at the city level. Zepto also boasts of having the highest customer retention and satisfaction rates in the industry, with an average rating of 4.8 out of 5 on its app.
The company plans to use the new funds to expand its presence to 50 cities by the end of 2023, as well as to launch new categories such as fresh meat, fish, bakery and pet products. Zepto also aims to invest in technology, data science, and supply chain optimization to further enhance its customer experience and operational efficiency.
Zepto’s co-founder and CEO Rajesh Kumar said, “We are thrilled to partner with Tiger Global and our existing investors in our journey to become India’s largest quick commerce platform. We are on a mission to make grocery shopping convenient, affordable, and delightful for millions of Indian consumers. We believe that quick commerce is the future of e-commerce, and we are well-positioned to lead this wave with our unique value proposition.”
Scott Shleifer, Partner at Tiger Global, said, “We are impressed by Zepto’s rapid growth and strong execution in a large and untapped market. Zepto has built a loyal customer base with its superior service and product quality. We are excited to support Zepto as it scales up its operations and transforms the way Indians shop for groceries.”
Zepto’s success story is a testament to the resilience and innovation of Indian entrepreneurs, who have overcome the challenges posed by the Covid-19 pandemic and the economic slowdown. Zepto has also demonstrated the potential of quick commerce as a new category that can cater to the evolving needs and preferences of urban consumers, who value speed, convenience, and quality. Zepto’s journey is far from over, as it aims to become not only India’s first unicorn in 2023, but also one of the leading e-commerce players in the country.