Zepto raised $200 million at a valuation of $1.4 billion in a Series E round with an agenda to build a good capital base ahead of a potential listing in 2025 amid a funding winter. The startup became India’s 1st unicorn this year and 84th overall. As many as 23 startups entered the unicorn club last year and 44 in the year before that. 

The StepStone Group led the Series E round with a $75 million investment, while Goodwater Capital invested $30 million in the company. The remaining $95 million was invested by existing investors, like Nexus Venture Partners, Glade Brook Capital, and Lachy Groom.

The quick commerce player aims to go public in the next 2-3 years and plans to become fully EBITDA (earnings before interest, taxes, depreciation and amortisation) positive in 12-18 months for the same. The company has significantly reduced its cash burn and has grown its sales by 300% year-on-year. It will likely achieve $1 billion in annualised sales within the next few quarters. 

Zepto has raised a total of $560 million since it was founded in 2020 by two teenagers, Kaivalya Vohra and Aadit Palicha. Zepto raised money this year even as most of the capital from the previous round, also $200 million, still sits in its bank accounts. Meanwhile, in the first half of 2023, India witnessed a funding plunge of more than 70% to $5.48 billion from $19.5 billion a year ago.

Headquartered in Mumbai, Zepto is the third-largest in terms of order volumes among its competitors, Zomato-owned Blinkit, Swiggy Instamart, Reliance-funded Dunzo and Tata’s BigBasket (BB Now). Zepto delivers more than 6,000 grocery products in 10 minutes through a network of delivery hubs in seven cities.