The valuation of the startup Zepto rose to $570 million.
Express grocery delivery service Zepto has raised $100 million in a new round of funding, Bloomberg reports. As a result, the valuation of Indian startups has grown from $225 million to $570 million in 2 months, its founder, Aadit Palicha, said in a media interview.
The main investor this round is the Y Combinator venture fund. Funding was also provided by Glade Brook Capital Partners, Nexus Venture Partners, Breyer Capital and investor Latchi Groom.
This is the second startup investment round with an institutional sponsor in two months. As a reminder, Zepto launched its express grocery delivery app in April this year. The platform raised $60 million in October.
This service is available to clients in 5 major cities in India: Delhi, Mumbai, Chennai, Gurgaon and Bangalore. The Zepto app has been downloaded by more than 500,000 users, according to Google Play. For comparison, in October gained 100 thousand downloads.
The Zepto network has 100 dar stores, Palicha told TechCrunch. The funds raised will be used to expand the startup team from 400 to 800 people and to increase the darkstore network. According to one of the founders, over the past month and a half, the platform’s turnover has grown 10 times. Zepto plans to grow another 10x in February or March, the startup’s co-founder said.
Y Combinator partner Anu Hariharan compared Zepto to major US delivery platform DoorDash.
“They initially launched with a different model, quickly transitioned to fast trading in August 2021 and are now attracting 100,000 new customers every week, 60% of whom are women. Their attention to detail in their logistics expertise is unmatched and this allows them to reach most major metro stations in just 5 months. Simply put, we believe Zepto will lead the sector in the long term,” Hariharan said.
According to the analytics company GrandViewResearch, by 2028 the volume of the Indian market for online product sales will grow to $38.9 billion. For comparison, in 2020 this figure will be $2.9 billion.
Read also: German delivery service Flink raises $750 million from investors led by DoorDash.