Zepto, a grocery delivery startup, has doubled its valuation after raising $100 million in investment.

Zepto acquired a new round of funding at $100 million (Rs 755 crore). The Series C was led by Y-Continuity Combinator's Fund. Previous backers such as Nexys Venture Partners, Glade Brook Capital Partner, Contrary Capital, and private investor Lachy Groom also participated.

Zepto, a grocery delivery startup, has doubled its valuation after raising $100 million in investment.

Zepto, a 10-minute grocery delivery service, has acquired a new round of funding at $100 million (Rs 755 crore), valuing the company at $570 million. The Series C was led by Y- Combinator's Fund. Previous backers such as Nexys Venture Partners, Glade Brook Capital Partner, Contrary Capital, and private investor Lachy Groom also participated in the round.

 

The news comes about two months after it raised $60 million from Glade Brook Capital in a capital round valued at $225 million post-money. Aadit Palicha and Kaivalya Vohra, Stanford University dropouts, founded Zepto, which promises to deliver groceries in 10 minutes.

The competitiveness of the swift commerce delivery business is undeniable. Swiggy, Blinkit (previously Grofers), Dunzo, and BigBasket, among Zepto's competitors, are also tripling their stakes in the fast delivery service. Grofers, which recently changed its name to Blinkit, announced that it would only operate in locations where it could deliver things in under 10 minutes.

 

Zepto intends to use the funds raised to increase its coverage across numerous Indian locations and scale its personnel across departments. The company is presently providing employment over 400 people and expects to grow to 1,000-2,000 in the following months.

 

The portal is currently available in major metropolises such as Mumbai, Bengaluru, Delhi, Hyderabad, Chennai, and Gurugram. It has debuted its services in Pune and expects to expand to Kolkata in the near future.

 

Since its was founded five months ago, the firm claims to have set up 100 micro-warehouses (dark stores) with a daily capacity of over 2,500 orders.

"We're increasing at a rate of 200 percent per month." In terms of volume, we've increased tenfold since the prior round. In the next 2-3 months, we want to grow our volume by tenfold," said cofounder Aadit Palicha