Amid the funding winter, online grocery delivery startup Zepto has become the first unicorn of 2023 to raise $200 million in Series-E fundraise, valuing the company at $1.4 billion.

The fundraise was led by US-based private markets investment firm StepStone Group. Also, the investment marks StepStone Group’s first direct investment in an Indian company. Avendus Capital acted as an exclusive advisor to Zepto on the deal.

Goodwater Capital, a consumer-focused venture capital firm based in California, also joined the round as a new investor.

Existing investors like Nexus Venture Partners, Glade Brook Capital, Lachy Groom and more, doubled down in Zepto with meaningful follow-on investments.

The development comes amid a stiff cash crunch faced by other quick delivery platforms such as Dunzo.

“This fundraise, in the midst of the deepest downturn in capital markets in over a decade, validates Zepto’s best in-class operating discipline. Zepto has proven the quick commerce business model by turning the majority of its dark stores fully EBITDA positive. Zepto’s burn has reduced significantly, and with this trajectory, the company will be fully EBITDA-positive in 12 to 15 months. More importantly, Zepto has delivered these profitability numbers while continuing to grow rapidly,” the company said in a statement.

The company has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters, it added.

Speaking on the development, Aadit Palicha, co-founder and CEO of Zepto said, “This business is about execution and we are succeeding because our execution is strong. Our culture of deep frugality and worshipping customers has gotten us here, but there is still so much for us to achieve. We are in this to build a generational company and it truly feels like this is just the beginning.”

The company has grown its sales by 300% year-on-year and will likely achieve $1 billion in annualized sales within the next few quarters.

Founded in 2021, Zepto essentially delivers over 6,000 grocery products in 10 minutes through a network of delivery hubs across the country.