Zepto Startup –
Zepto Startup is a Mumbai-based startup that operates a 10-minute instant grocery delivery service, founded by two 19-year-old entrepreneurs in April 2021 who are childhood friends Aadit Palicha and Kaivalya Vohra who dropped out of Stanford University’s computer science program to return to India and become e-commerce entrepreneurs. The Mumbai-based startup, which promises grocery deliveries in 10 minutes, faces intense competition from well-capitalized rivals like Swiggy, Reliance Industries-backed Dunzo, and Tata Digital-owned BigBasket trying to tap the segment through various delivery timings. Zepto delivers over 3,000 products in 10 minutes.
Online Grocery Market In India –
The Indian Online Grocery Market stood at $3.95 Bn in FY2021 and is expected to grow at a CAGR of around 33.00% in the forecast period, to reach $26.63 Bn by FY2027. Consumers are actively adopting services and products that can add to comfort and convenience and improve living standards. The adoption of an online grocery system by consumers is expected to grow at a rapid rate as the market players provide all the necessary household items in a few hours at discounted rates.
Zepto Funding –
Zepto has raised a $200 Mn funding round led by existing investor YC Continuity Fund in a Series D round taking its valuation to around $900 Mn. Earlier zepto raised $100 Mn in a Series C round from Y Combinator’s Continuity Fund. In OCT 2021, Zepto’s series A round, the company raised $60 Mn from Glade Brook Capital Partners. Zepto plans to use the funds to grow its product and tech teams to over 1,000 people in a few months, including engineering, analytics, operations, marketing, finance, and human resources.
|Announced Date||Transactions||Money Raised|
|OCT 2021||Series A||$60 M|
|DEC 2021||Series C||$100 M|
|MAY 2022||Series D||$200 M|
Zepto Startup a 10-minute delivery service is today operational in 11 cities across India and it processes hundreds of thousands of orders each day. The startup plans to expand to an additional 12 to 20 cities in the next 12 months and set up a few hundred more dark stores, which it uses to store inventory. Zepto is also piloting a service to deliver coffee, chai, and other café items in 10 minutes across select areas in Mumbai. The new category – Zepto Café – “is being received quite well by early customers.
Zepto Startup competes with Google-backed Dunzo, SoftBank Group Corp-backed Blinkit, and Naspers Ltd-backed Swiggy. Zepto has the highest market share in Delhi and Gurugram (30%), followed by Bengaluru (22%) and Mumbai (21%). Its competitor in Delhi and Gurugram is Blinkit (formerly Grofers) and in Bengaluru & Chennai, it competes with Dunzo. Zepto has tied up with restaurants such as Blue Tokai Coffee, Chaayos, Gurukripa snacks, Pescafresh, and Sassy Teaspoon to deliver snackable items in 10 minutes.
The Zepto startup’s current annualized revenue is between $200 Mn to $400 Mn, according to the company. The surge in revenue comes as the startup has consistently grown by over 50% each month in recent months. The company posted 800% Q-o-Q revenue growth while burn has come down 5X on a per-order basis, says the company. Zepto startup witnessed a 946% user growth between December 2021 and March 2022. The Zepto startup is aiming to clock an annualized revenue of $1 billion by the first quarter of the Calendar year 2023.
For more details about funding –