Zepto (company)
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| Company type | Private |
|---|---|
| Industry | E-commerce |
| Founded | 2020 |
| Headquarters | , India |
Number of locations | 100 distribution centers (2022) |
Key people | |
| Services | Online grocer |
Number of employees | 1,000+ (2022) |
| Website | zeptonow |
Zepto is an Indian q-commerce company focused on grocery and food delivery. Founded in 2020 and launched in July 2021, Zepto became one of the fastest growing startups in Indian history, scaling to 1,000+ employees by May 2022, within one year of launch.[1]
As of 2022, Zepto is valued at $900 million.[2] Cofounders Aadit Palicha and Kaivalya Vohra were named as Forbes 30 Under 30 list honorees[3] and the nation's youngest of 1,103 individuals in India with a net worth of more than ₹1,000 crore.[4]
History
CEO Palicha started Zepto with CTO Vohra in 2020 when they were 17 years old. They previously built a ride-hailing service in Dubai together which was acquired by a local firm.[5] After both earning admission to Stanford University, Palicha and Vohra decided to defer college, instead raising their first money from Contrary, which offered to invest in the duo in lieu of attending school.[6]
Palicha and Vohra originally branded their company as KiranaKart and focused on facilitating grocery delivery by partnering with local kiranas.[7] They also participated in Y Combinator's accelerator program while building out the first version of their app. In 2021, they rebranded to Zepto and verticalized their operation, building a network of "dark stores" that can deliver to local customers in under 10 minutes on average.
Throughout the following 18 months, Zepto raised over $360 million across 4 fundraising rounds, and created over 100 operational hubs across India.
In April 2022, Zepto launched Cafe, an additional service focused on delivery of coffee and ready-to-eat food.[8]
Controversy
In April 2022, Anand Mahindra amplified a tweet to his 10M+ followers commenting that q-commerce delivery is "inhuman" to the delivery workers that Zepto contracts to fulfill orders. Palicha responded claiming that Zepto focuses on short distances to achieve fast speed, and that only safe speeds of less than 15 kmph are necessary.[9]
Funding Rounds
Zepto has raised $360 million in the two years since taking on their first external capital. The company measures it's capital in US dollars rather than Indian Rupees.
| Round | Size | Valuation | Lead Investor(s) |
|---|---|---|---|
| Seed[10] | $730,000 | undisclosed | Contrary |
| Series A | undisclosed | undisclosed | Nexus Venture Partners |
| Series B[11] | $60 million | $225 million | Glade Brook Capital |
| Series C[12] | $100 million | $570 million | Y Combinator |
| Series D[2] | $200 million | $900 million | Y Combinator |
References
- ^ "These Two 19-Year-Olds Scaled Zepto Company Into A $900 Million In Nine Months - Inventiva". 2022-05-09. Retrieved 2022-12-29.
- ^ a b Singh, Manish (2022-05-02). "Zepto, a 10-minute grocery delivery app, raises $200 million". TechCrunch. Retrieved 2022-12-29.
- ^ "Zepto". Forbes. Retrieved 2022-12-29.
- ^ "19-year-old Stanford University Dropout Becomes Youngest Indian With Rs 1,000 Crore Personal Wealth". India.com. 2022-09-21. Retrieved 2022-12-29.
- ^ "Y Combinator-backed Zepto launches 10-minute food delivery service 'Cafe' in Mumbai". Moneycontrol. Retrieved 2022-12-29.
- ^ Hernbroth, Megan. "One Silicon Valley venture firm will invest up to $100,000 in startups founded by college students taking a gap year to become entrepreneurs". Business Insider. Retrieved 2022-12-29.
- ^ Li, Steven. "They Raised $360 Million After Dropping Out Of Stanford And Built Grocery Delivery App Zepto, Now Worth $900 Million". Forbes. Retrieved 2022-12-29.
- ^ "Zepto unveils 10-minute food delivery service 'Cafe' in Mumbai: All you need to know". Zee News. Retrieved 2022-12-29.
- ^ "Anand Mahindra | Zepto : Anand Mahindra isn't impressed with 10-min delivery, but gives Zepto boss a 'fair' chance to explain his POV". The Economic Times. Retrieved 2022-12-29.
- ^ "How two 19-year-old Stanford dropouts founded Zepto". Business Today. 2021-11-12. Retrieved 2022-12-29.
- ^ Singh, Manish (2021-10-31). "India's Zepto raises $60M for its 10 minute grocery delivery app". TechCrunch. Retrieved 2022-12-29.
- ^ Singh, Manish (2021-12-20). "Zepto, a 10-minute grocery delivery app in India, raises $100 million". TechCrunch. Retrieved 2022-12-29.