Zepto becomes India's first unicorn of 2023, raises $200 million, plans IPO in 2025

Online grocery startup Zepto has become India's first unicorn of 2023 and 111th unicorn of India after it raised $200 million in series E funding valuing the Mumbai-based firm at $1.4 billion. Zepto raised funds from US-based private equity firm StepStone Group. Goodwater Capital, and its existing investors Nexus Venture Partners, Glade Brook Capital, Lachy Groom and others also participated in funding the startup.

The company added that it plans to launch its initial public offer by 2025.

"Energized by our recent fundraise, we're more equipped than ever to deliver excellence to our customers! Here’s to everyone who has been a part of our incredible journey," Zepto said in a post on Linkedin.

“This fundraise, in the midst of the deepest downturn in capital markets in over a decade, validates Zepto’s bestin-class operating discipline. Zepto has proven the quick commerce business model by turning the majority of its dark stores fully EBITDA positive. Zepto’s burn has reduced significantly, and with this trajectory, the company will be fully EBITDA positive in 12 to 15 months," Zepto said in a statement.

Founded in 2021 by Stanford University dropouts, Aadit Palicha and Kaivalya Vohra, Zepto is India’s fastest growing e-grocery company. 

“This business is about execution and we are succeeding because our execution is strong. Our culture of deep frugality and worshipping customers has gotten us here, but there is still so much for us to achieve. We are in this to build a generational company and it truly feels like this is just the beginning," said Aadit Palicha, co-founder and CEO, Zepto.

Zepto is present across 10 major cities in the country, with 1,000+ employees and delivers 5,000 plus products, including fresh fruits and vegetables, daily cooking essentials, dairy, health-and-hygiene products, etc., to Indian homes within 10 minutes.