Zepto emerges as a star in India’s startup scene, while others face hurdles. Get a quick roundup of this week’s top startup news.
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India celebrates its first unicorn of 2023, Zepto, marking the country’s 111th unicorn.
The startup has impressively bagged a whopping $200 million from investors, boasting a valuation of $1.4 billion.
This comes as a surprise for many since, not long ago, Quick Commerce was deemed a dying business model by Indian business media.
Zepto’s Unique Selling Proposition
While competitors like Blinket were sold for peanuts and Dunzo struggled with employee salaries, Zepto soared.
What made Zepto stand out?
According to Zep’s co-founder Aadit Palicha and Kaivalya Vohra during his chat with TechCrunch, it is all about impeccable execution and maintaining an unmatched discipline over the entire supply chain.
Their secret also lies in the technologically advanced product stack that monitors user behaviors, ensuring timely deliveries.
Zepto has spread its wings across seven cities, processing 300,000 orders daily and generating an annual revenue of $700 million, achieved within two years.
Their next move? Further expansion and aiming for an IPO in 2025.
Troubles in Dunzo’s Camp
On the flip side, Dunzo, Zepto’s competitor, faces challenges.
The company deferred the salaries of 500 employees, a significant 50% of their workforce.
They initially delayed the June salaries to July and then September, with a new deadline now set for October.
After burning through $150 million in the last 18 months, Dunzo remains trapped in valuation battles with investor Reliance Retail, which owns 26% of the company.
It is stormy waters for ed-tech giant BYJU’s.
Several top-tier exits include the Chief Business Officer, Business Head of BYJU Tuition Center, Business Head for classes 4-10, and the CEO of WhiteHat Jr.
Additionally, Baron Capital slashed BYJU’s valuation from $22 billion to a mere $1.7 billion.