Indian grocery startup Zepto, that offers a quick 10-minute delivery turnaround on orders, on Monday secured another $100 million in funding from startup accelerator Y Combinator, and others to clock a valuation of $570 million, according to a news report.
Investors in the latest round include existing financiers like Glade Brook Capital Partners, Nexus Venture Partners, Silicon Valley angel investor Lachy Groom with the new addition of technology investor Breyer Capital, Bloomberg reported.
"The founders bring Doordash [ (DASH) - Get DoorDash, Inc. Class A Report]-like execution to the quick commerce model," Anu Hariharan, a partner at Y Combinator’s Continuity Fund, told Bloomberg. "The startup is adding 100,000 new customers every week," Hariharan told Bloomberg.
The latest investment comes six weeks after the company, founded by two teenage Stanford dropouts, raised $60 million from Y Combinator and Glade Brook Capital to expand its presence in India’s competitive grocery delivery market, at a $225 million valuation.
Zepto will compete with the likes of Walmart (WMT) - Get Walmart Inc. Report owned Flipkart, e-commerce giant Amazon (AMZN) - Get Amazon.com, Inc. Report, Google's (GOOGL) - Get Alphabet Inc. Class A Report Dunzo and Swiggy backed by South African internet giant Naspers, in addition to other local mom-and-pop delivery services.
Zepto is also backed by Global Founders and Silicon Valley angel investor Neeraj Arora.
Founded by 19-year-olds Aadit Palicha and Kaivalya Vohra, the company offers delivery services in Mumbai, Delhi, Chennai, Gurgaon, Bangalore and Hyderabad.
"Zepto is growing quickly and its core unit economics are strong," Palicha said in a statement cited by Bloomberg. "Delivering within 10 minutes is game changing," Co-Founder Vohra, the chief technology officer told Bloomberg.
The new round of funding will allow the Mumbai-based startup to grow its team and expand to cities like Kolkata and Pune.