Zepto is first Indian unicorn for 2023, valued at $1.4bn

Quick-delivery startup Zepto is India’s first unicorn for this year after it raised $200m at a valuation of $1.4bn in its latest funding round, as per reports in Indian media. Zepto’s valuation which has scaled rapidly ended India’s 11-month wait for a startup to achieve unicorn status.

The Series E round of funding was led by US asset management firm StepStone Group, along with Goodwater Capital and existing investors. Zepto was valued at $900m in May 2022.

After the funding round, Zepto said it raised the funds, “in the midst of the deepest downturn in capital markets in over a decade.”

The valuation is a notable achievement as Zepto is the first startup to be valued at over $1bn in India this year. The last unicorn or startup to achieve this status in India was Molbio Diagnostics in September 2022. The year 2021 had seen India add a unicorn almost every week.

Zepto’s ride

The platform which promises to deliver groceries in under 10-minutes was founded in 2021 by two 19-year-olds – Aadit Palicha and Kaivalya Vohra. The founders dropped out of Stanford University to pursue their entrepreneurial dream. The quick-service e-commerce venture was initially backed by Y Combinator, Glade Brook Capital, as well as angel investors Lachy Groom and Neeraj Arora, according to the firm.

The startup is named after Zeptosecond – the shortest unit to measure time. “Operating in a bear market has forced us to be more disciplined. There is no question of growth or profit, it has to be both,” Palicha said.

The company is also planning an initial public offering in 2025, he added.

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