Zepto raises $200 million, becomes first unicorn of 2023
The article featuring in NDTV discusses the success story of Zepto, an instant grocery startup founded by two 20-year-old Stanford University dropouts, Kaivalya Vohra and Aadit Palicha. Despite a challenging venture funding climate, Zepto secured fresh funds at a $1.4 billion valuation, making it a rare Indian unicorn. Investors like StepStone Group and Goodwater Capital contributed a total of $200 million. Backed by startup incubator Y Combinator, Zepto aims to achieve profitability within 15 months and plans to go public in two to three years.
Palicha and Vohra, childhood friends and the company’s founders, left Stanford to establish the startup in India. Zepto stands out in India’s fast-growing consumer internet category, focusing on “quick commerce,” which is expanding more rapidly than other segments like ride-hailing and food delivery. Despite global challenges in the quick commerce sector, Zepto faces competition from rivals in India, including Dunzo, Blinkit, and Instamart.
The startup’s success is evident through its 220+ “dark stores” or neighborhood warehouses across cities like Mumbai, Bangalore, and New Delhi. Zepto’s rapid growth and revenue, exceeding $600 million annually, reflect the potential of its model. With a median delivery time of 12 minutes and a diverse stock of over 7,000 products, Zepto aims to establish itself as a significant player in India’s evolving retail market, potentially even rivaling giants like Amazon.
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