The company plans to use the funding to increase the size of its dark store network. Here are the top-line bullets you need to know.
Zepto, a grocery delivery service provider, has raised $200M in a Series D. The round drew participation from Kaiser Permanente Ventures, Nexus Venture Partners, Contrary, Glade Brook Capital, and Y Combinator, among others.
How’s the company performing?
- India-based Zepto provides 10-minute grocery delivery services.
- The company has established a network of dark stores, i.e., micro-fulfillment centers, across the cities in which it operates.
- The startup estimates that its current annualized revenue falls between $200M and $400M. It expects that figure to grow to $1B by March 2023.
- Last quarter, its revenue grew by 800%, and it reduced its expenses per order by more than 5x.
- The company, which is currently supported by a team of approximately 1K employees, operates across 11 cities in India, including Mumbai, Kolkata, Bangalore, Delhi, Gurgaon, Noida, Pune, Chennai, Ghaziabad, and Hyderabad.
Source: Zepto
Why does the market matter?
- The global logistics market is expected to reach a value of $13T by 2027, growing at a CAGR of 6.5%, according to Allied Market Research.
- The pandemic-induced increase in demand for fast-moving consumer goods (FMCG), medical supplies, and other consumer goods has accelerated the growth of online retail, which has driven global logistics market expansion.
- The rising demand for last-mile delivery solutions has contributed to market growth as well.
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