[Funding alert] Zepto raises $100M led by Y-Combinator to expand its quick commerce services
In less than two months, quick commerce platformraised a new round of $100 million led by Y-Combinator, taking its valuation to $570 million.
Existing investors have "doubled down" on their investments. These include Nexus Venture Partner, US-based Glade Brook Capital Partner, individual investor Lachy Groom, and San Fransico-based Contrary Capital. So far, Zepto has raised close to $60 million across two rounds.
"The bulk of this capital will be used to expand our coverage beyond metro cities and expand our team size as quickly as possible," says Aadit Palicha, Co-founder and CEO, Zepto.
Currently, the platform is operational in major metro cities including Mumbai, Bengaluru, Delhi, Hyderabad, Chennai, and Gurugram. The platform launched in Pune a few days ago and will enter Kolkata soon.
The firm aims to rapidly increase its team size from the current 400 members
Founded in April 2021 by Stanford University dropouts Aadit and Kaivalya Vohra, Zepto is an instant delivery app that brings groceries to users in 10 minutes or less. The co-founder claims the startup’s median delivery time is 8 minutes 47 seconds.
The fundraise comes at a time when seasoned and well-funded delivery players including food delivery aggregator Swiggy (Instamart), Grofers, which is now Blinkit, and micro-delivery platform Dunzo are already operating in the segment.
Zepto's latest funding is expected to help it to go head-to-head with delivery biggies.
While the platform might only be operating for a little over six months, it claims to be adding a new dark store every few days. The platform also plays on efficiency where delivery personnel is out with an order in about 60 seconds. Currently, the firm employs 400 members and is rapidly growing the team.
Aadit claims that the startup is hiring a couple of new members every week.