Just six months after emerging from stealth mode, Zepto, the Indian 10-minute grocery delivery already has a valuation close to $900m, after a raising $200m in series D funding from investors including healthcare provider Kaiser Permanente, TechCrunch reported.
Y Combinator’s Continuity Fund led the round, which also included Nexus Venture Partners, Contrary Capital, Glade Brook Capital and private investor Lachy Groom.
Coming out of stealth mode in November last year, Zepto has grown into a serious competitor in India’s bustling fast delivery market with its pledge to deliver essential groceries within 10 minutes from a network of micro warehouses dispersed throughout local neighbourhoods.
The company currently processes hundreds of thousands of orders each day across 11 cities in India, with consistent monthly revenue growth of over 50% in recent months and annualised revenues of between $200m and $400m, Zepto’s chief executive, Aadit Palicha, told TechCrunch.
Y Combinator’s Continuity Fund also led a $100m series C round for Zepto in December last year, with participation from Glade Brook Capital, Breyer Capital, Nexus Venture Partners, Global Founders Capital, Contrary Capital and Lachy Groom at a valuation of $570m, one month after emerging from stealth. This latest round brings its total funding to $360m.
Palicha, who dropped out of Stanford University alongside co-founder Kaivalya Vohra at the age of 19 to start the company, revealed in October last year that Zepto raised $60m in initial funding provided by Y Combinator, Glade Brook Capital, Lachy Groom and fellow angel investor Neeraj Arora.
Zepto is playing in a crowded field that includes juggernauts like rapid-delivery provider Blinkit, which recently scaled back its wider Indian strategy to focus on the 10-minute delivery market. Blinkit was acquired in March by restaurant listings and food delivery service Zomato. Meanwhile, another rival, Swiggy, raised $700m in a January series K round backed by internet groups Prosus and Smile Group.
Image courtesy of Zepto
