Business Crawler

Aug 26, 2023

Zepto Becomes India's First Unicorn of 2023

Zepto, a quick commerce platform, has raised $200 million in a Series E funding round led by StepStone Group, Goodwater Capital, and a few current investors. The round values Zepto at $1.4 billion, making it the first Indian startup to achieve unicorn status in 2023.

The fresh capital will be used to drive growth, reach Ebitda profitability in the next 12-15 months, fuel expansion in more cities, and invest in add-on offerings like Zepto Cafe.

Founded in 2020 by Aadit Palicha and Kaivalya Vohra, Zepto delivers groceries and other essentials within 10 minutes of placing an order. The company currently operates in seven cities in India and has raised about $560 million in funding so far.

Zepto's funding round comes at a time when the quick commerce sector is facing some headwinds. Rivals like Blinkit and Grofers have been forced to lay off employees and scale back their operations. However, Zepto's backers believe that the company is well-positioned to succeed in the long term.

"Zepto has built a strong brand and customer base in a very short period of time," said StepStone Group Partner Ajay Agarwal. "We believe that the company is uniquely positioned to capitalize on the growing demand for quick commerce in India."

Zepto's success is a sign that the quick commerce sector is still in its early stages of development in India. The market is expected to grow rapidly in the coming years, and Zepto is well-positioned to be a leader in this space.

High customer acquisition costs: Quick commerce startups spend a lot of money on marketing and advertising to acquire new customers. This can be a major challenge for these companies, especially in a market like India where there are a lot of competitors.

Low margins: Quick commerce startups typically have very low margins. This is because they have to offer discounts and promotions to attract customers. This can make it difficult for these companies to be profitable.

Competition: There are a lot of quick commerce startups in India. This competition can make it difficult for these companies to stand out from the crowd.

Wide selection of products: Zepto offers a wide selection of products, including groceries, snacks, beverages, and more. This makes it a convenient one-stop shop for all your daily needs.

Convenient delivery: Zepto offers delivery within 10 minutes of placing an order. This is perfect for those who are short on time or who need something urgently.

Affordable prices: Zepto offers competitive prices on its products. This makes it a great option for budget-conscious shoppers.

Easy to use app: Zepto has a user-friendly app that makes it easy to browse products, place orders, and track deliveries.

Good customer service: Zepto has a good reputation for customer service. This is important for any company that wants to keep its customers happy.

Zepto Cafe: Zepto recently launched Zepto Cafe, which offers a variety of hot and cold beverages, snacks, and desserts. This is a great addition to Zepto's offerings, and it makes the app even more convenient for customers who need a quick bite to eat or a caffeine fix.

Zepto Plus: Zepto Plus is a premium subscription service that offers members exclusive benefits, such as free delivery, discounts, and early access to new products. This is a great way for customers to save money and get the most out of Zepto.

Zepto's expansion plans: Zepto has plans to expand to more cities in India and even to other countries in the future. This is exciting news for customers who want tosee Zepto become a global leader in quick commerce.

Growing demand: There is a growing demand for quick commerce in India. This is due to the increasing number of working professionals and the rising disposable incomes of Indians.

Technology: Technology can help quick commerce startups to lower their costs and improve their efficiency. For example, startups can use artificial intelligence and machine learning to optimize their supply chains.

Government support: The government of India is supportive of the quick commerce sector. This is because the government believes that this sector can create jobs and boost economic growth.