Zepto secures $100 million from Y Combinator & Others, Valuing at $570 million
Mumbai-based Zepto has secured $100 million from its previous investor, Silicon Valley startup accelerator Y Combinator's Continuity Fund, signalling the frenzied dealmaking in the so-called ultrafast delivery area.
The Mumbai-based company, which is one of the most talked-about startups this year, has more than doubled its valuation to $570 million after raising $60 million at a valuation of $225 million just two months ago.
Glade Brook Capital, Nexus Venture Partners, Global Founders Capital, and Contrary Capital were among the new and current investors in the round.
Delivery times of 30 minutes are promised by ultra-fast commerce businesses.
“We are growing 200% month-on-month. Since the last round, we have grown 10-fold in terms of volume. We are planning to increase our volume by 10x in the next 2-3 months,” cofounder Aadit Palicha said.
Palicha and Kaivalya Vohra, Stanford University dropouts, founded Zepto six months ago with the promise of delivering groceries in 10 minutes.
Palicha founded GoPool, a mobile app that enabled parents in Dubai find and plan carpools to school, when he was 17 years old.
Zepto is the newest player in the rapid commerce field, which has seen the likes of Swiggy and BlinkIt (previously Grofers) enter this year.
Swiggy, a food delivery service, has set aside $700 million to expand its ultra-fast commerce platform Instamart. BlinkIt, on the other hand, is in talks with competitor food delivery app Zomato to raise $500 million. Both companies claim to be processing around a million orders per month.
According to industry sources, Zepto will reach 100,000 orders per day in January.
The business will utilise the new funding to expand its coverage, develop new categories, and improve its back-end technology. It also intends to increase its workforce from 400 to 1,000-2,000 people. The operations team employs the majority of the company's workforce.
“We are excited to double down and lead this round in Zepto (YC W21),” said Anu Hariharan, XXX of Silicon Valley investor Y Combinator. “Since Aadit and Kaivalya went through Y Combinator, we have observed that they're exceptional founders who bring relentless focus and "DoorDash-like" execution to the quick commerce model and are now adding 100,000 new customers every week, 60% of them women.”
The Mumbai-based company, which is one of the most talked-about startups this year, has more than doubled its valuation to $570 million after raising $60 million at a valuation of $225 million just two months ago.
Glade Brook Capital, Nexus Venture Partners, Global Founders Capital, and Contrary Capital were among the new and current investors in the round.
Delivery times of 30 minutes are promised by ultra-fast commerce businesses.
“We are growing 200% month-on-month. Since the last round, we have grown 10-fold in terms of volume. We are planning to increase our volume by 10x in the next 2-3 months,” cofounder Aadit Palicha said.
Palicha and Kaivalya Vohra, Stanford University dropouts, founded Zepto six months ago with the promise of delivering groceries in 10 minutes.
Palicha founded GoPool, a mobile app that enabled parents in Dubai find and plan carpools to school, when he was 17 years old.
Zepto is the newest player in the rapid commerce field, which has seen the likes of Swiggy and BlinkIt (previously Grofers) enter this year.
Swiggy, a food delivery service, has set aside $700 million to expand its ultra-fast commerce platform Instamart. BlinkIt, on the other hand, is in talks with competitor food delivery app Zomato to raise $500 million. Both companies claim to be processing around a million orders per month.
According to industry sources, Zepto will reach 100,000 orders per day in January.
The business will utilise the new funding to expand its coverage, develop new categories, and improve its back-end technology. It also intends to increase its workforce from 400 to 1,000-2,000 people. The operations team employs the majority of the company's workforce.
“We are excited to double down and lead this round in Zepto (YC W21),” said Anu Hariharan, XXX of Silicon Valley investor Y Combinator. “Since Aadit and Kaivalya went through Y Combinator, we have observed that they're exceptional founders who bring relentless focus and "DoorDash-like" execution to the quick commerce model and are now adding 100,000 new customers every week, 60% of them women.”
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