Mumbai’s quick commerce unicorn, Zepto, has secured an additional $31.25 million in funding in its latest Series E round.
This round saw investments from Goodwater Capital, Nexus Venture Partners, and angel investors like Oliver and Lish Jung, and Mangum II LLC.
This new injection of funds follows a major milestone for Zepto in August when it raised a whopping $200 million during its Series E round, earning the company a valuation of $1.4 billion. This achievement marked Zepto as the first unicorn of 2023.
Zepto’s total funding now stands at nearly $625 million, demonstrating the strong support and interest from investors. The company’s success can be attributed to its 10-minute quick delivery platform, which has posted impressive financial growth.
In the fiscal year 2023, Zepto reported a 14-fold increase in revenue, soaring to ₹12,024 crore from ₹142.4 crore in the previous fiscal year. However, the company also faced higher losses, rising to ₹1,272 crore from ₹390.4 crore.
Despite these challenges, Zepto has stood out in a fiercely competitive market. The quick commerce startup, led by Aadit Palicha and Kaivalya Vohra, has been in operation for just over two and a half years and is already present in seven cities. It operates more than 250 dark stores, stocking over 6,690 different products, and has doubled its daily delivery capacity to 350,000 orders in just over a year.
Zepto’s impressive performance highlights the growing demand for quick delivery services, but it also underlines the challenges of maintaining profitability in a market where many are still figuring out how to make their businesses financially sustainable.