By Anees Hussain
Zepto, a quick commerce startup, Friday turned a unicorn by raising $200 million at a valuation of $1.4 billion. The company’s valuation jumped from $900 million in May 2022, when it had last raised funds. The development assumes significance as it is the first unicorn to be born this calendar year and comes after a gap of 11 months. Molbio Diagnostics, in September 2022, was the last to achieve unicorn status.
Of the $200 million raised, $105 million came from StepStone Group ($75 million) and Goodwater Capital ($30 million). The remaining $95 million came from existing investors Nexus Venture Partners, Glade Brook Capital and Lachy Groom.
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Zepto said that it plans to launch an initial public offering by early 2025 and aims to turn Ebitda positive in 12-15 months.
“Operating in a bear market has forced us to be more disciplined. We were previously looking at a sea-saw between profitability and growth. However, we realise that there is no question of choosing one between growth or profit, it has to be both,” Aadit Palicha, co-founder and CEO of Zepto, said.
He added that the funding validates the company’s business model and the team’s execution. “We are excited to use this capital to accelerate our growth and build the future of grocery delivery in India,” Palicha said.
The funding will be used to expand Zepto’s operations to more cities, build its dark store network and improve its technology. The company also plans to use the funds to hire more talent. Zepto competes with Zomato’s Blinkit, Swiggy Instamart and Tata’s BigBasket. FE