Zepto has raised $200 million in a Series D round. The round was led by the Y Combinator Continuity Fund, Kaiser Permanente Ventures, Nexus Venture Partners, Glade Brook Capital Partners, and Lachy Groom, (earlier with Stripe), who raised their money in Zepto.
Zepto wants to enter at least 10 new locations outside of the metros in the next upcoming months.
Zepto was founded by Aadit and Kaivalya Vohra in the year 2021. Zepto initially started by delivering groceries and daily essentials in the timespan of 10 minutes across Mumbai. The company deals with customers in Delhi, Bengaluru, and Hyderabad, among other cities.
The quick commerce platform, Zepto has been captaining its cafe offering, where brands, including Blue Tokai and Sassy Spoon, sell out their products and are delivered in 10 minutes.
Quick commerce is the latest additional category in the e-commerce delivery space, which emerged in the COVID-19 pandemic. Players, including Swiggy Instamart, Blinkit (earlier Grofers), and Dunzo, are all taking lead in this industry, with Swiggy investing at least $700 million to expand in the quick commerce space.
As a newcomer, Zepto has been growing extensively, with its team size growing to over 1,000 employees from 400 members in December 2021.
"We are looking pretty good with the expansion plan, and we are opening a new dark store almost every 48 hours," Aadit Palicha, Co-founder and CEO, of Zepto.
He added, "We have been able to significantly reduce our last-mile delivery and operations burn, and this is what gives investors’ confidence to back us."