Indian online grocery delivery start-up Zepto has secured $200m in a new funding at valuation of $1.4bn, the Economic Times Retail reported.

The funding round was led by US-based private investment firm StepStone Group, followed by California-based venture capital firm, Goodwater Capital.

In addition, existing investors including Nexus Venture Partners, Glade Brook Capital, Lachy Groom and others joined the round.

With this funding round, it has become the first unicorn of this year in India.

The company plans to use proceeds from the Series E funding round to foray into new markets and expand deeper into existing markets.

Currently, the retailer operates over 200 ‘dark’ stores across 14-15 cities and plans to add 40% more stores with the new proceeds.

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By GlobalData

Mint quoted Zepto as stating: “This fundraise, in the midst of the deepest downturn in capital markets in over a decade, validates Zepto’s bestin-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.”

Founded in 2021, Zepto delivers more than 6,000 grocery products in ten minutes through a network of delivery hubs across the country.

Last year, the company also raised $200m in Series D funding at a $900m valuation. This round was led by American technology startup accelerator Y Combinator’s Continuity Fund, and saw participation of new investor Kaiser Permanente, along with existing backers.