Mumbai Teens’ Startup Raises 100 Million, Twofold Its Esteem In 5 Months

Mumbai Teens’ Startup Raises 100 Million, Twofold Its Esteem In 5 Months

Zepto, a two-year-old immediate grocery delivery business; has acquired $100 million in a funding round lead by Y Combinator, also bringing its valuation to $570 million; just five months after launching in India’s burgeoning quick commerce market.

According to Aadit Palicha, co-founder and chief executive officer; the startup’s latest fundraising comes 45 days after a prior capital raise; of $60 million at a valuation of $225 million. In addition to Y Combinator’s Continuity Fund, Glade Brook Capital Partners, Nexus Venture Partners; Breyer Capital, and Silicon Valley investor Lachy Groom also participated in the newest round, the business said in a statement.

Palicha and his boyhood buddy Kaivalya Vohra, both 19, founded Zepto after dropping out; of Stanford University’s prestigious computer science department to return to India and create a business in rapid commerce. The firm began in Mumbai earlier this year and has already expanded to Bangalore; Delhi, and four other cities, promising to deliver groceries and everyday supplies in 10 minutes.

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Furthermore, In India, a $1 trillion retail market where grocery purchases make for the majority of retail spending; online grocery delivery is gaining traction. Zepto is up against companies like Blinkit, which is supported by SoftBank Group Corp., Dunzo, which is backed by Google; and Swiggy, which is backed by Naspers Ltd., as well as Amazon.com Inc. and Walmart Inc.-backed Flipkart.

Palicha noted in the statement that Zepto is developing swiftly and that its basic unit economics are solid. The ability to deliver within 10 minutes is “game changing,” according to co-founder and chief technology officer Vohra. The fresh funding will enable the Mumbai-based firm to expand its workforce and reach new cities.

The company operates 100 “black stores,” or micro-warehouses, in high-demand areas; and using technology to conduct activities such as determining store sites; product positioning, and determining delivery routes to avoid traffic congestion. It now ships over 2,500 items, including fresh produce; kitchen basics, snacks and beverages, personal care products, and also household cleaning supplies.

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According to Anu Hariharan, a partner at Y Combinator’s Continuity Fund; the founders bring “Doordash-like” execution to the rapid commerce concept. According to the statement, also the firm is acquiring 100,000 new customers every week.

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