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Zepto becomes India’s first 2023 unicorn with $200 million fresh funding on August 25, 2023 at 8:24 am

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Instant grocery delivery startup Zepto has raised $200 million in a new funding round at a valuation of $1.4 billion, it said Friday, at a time when most other firms in the category have either died or are struggling. The funding makes Zepto the first Indian startup to attain the unicorn status this year.

StepStone Group, an influential LP in many venture funds including Nexus Venture Partners, led Zepto’s Series E funding in what is the U.S. firm’s first direct investment in India. Goodwater Capital and existing backers, including Nexus, Glade Brook Capital and Lachy Groom also participated in the round.

Zepto was last valued at $900 million in a funding round it unveiled in May last year. The startup, which has raised about $560 million to date, witnessed no secondary transaction in the new round, Zepto co-founder and chief executive Aadit Palicha said in an interview.

The funding comes at a time when the vast majority of instant delivery startups globally – Gopuff, Jokr, Getir, Gorillas, Instacart and others that collectively raised over $10 billion – have significantly curtailed their operations, have seen their private valuations plummet, or shut down entirely.

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Closer to home, Zepto-rival BlinkIt got sold for less money than it had raised after nearly a decade of operation. Reliance Retail-backed Dunzo has deferred payments to employees and cut workforce after aggressively spending over $150 million to expand its dark stores, a gamble that appears to have not worked at all.

So what has worked for Zepto?

“Most people don’t realize this, but businesses that are driven by supply chain and are operationally intense are fundamentally about execution,” Palicha told TechCrunch. “The high-level elements that people keep throwing – existence of deep-pocketed competitors, who all is on the cap table etc – don’t matter. What matters is the basis point by basis point execution and discipline with which you are governing every inch of your supply chain.”

Palicha and Kaivalya Vohra co-founded Zepto when they were 19.The duo — who had previously worked on a number of projects, including a ride-hailing commute app for school kids, and dropped out of Stanford two years ago — took Zepto out of stealth mode in late November 2021.

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The startup, which sells and delivers everything from grocery items to electronic gadgets, processes over 300,000 orders a day in seven Indian cities. Zepto, like many other firms operating in the category, relies on hundreds of so-called dark stores that dot popular neighbourhoods across cities. The vast majority of these stores are fully EBIDTA positive, Palicha said.

In fact, Zepto has reduced its “burn” significantly and is aiming to be IPO-ready with a company-wide EBIDTA positive metric in 12 to 15 months, he said. The startup — whose annualized revenue run rate today exceeds $700 million, according to Palicha — has grown its sales by 300% year-on-year and is targetting $1 billion in annualized sales within the next few quarters, he said.

“Even with this capital, we want to maintain our discipline, avoid complacency, and push hard to hit EBITDA positivity,” said Kaivalya Vohra, Zepto co-founder and CTO, said in a statement. “In that journey, the biggest drivers of P&L improvement for us are based on technology and product. We are building one of the best supply chain product stacks in the country today and we are investing heavily in customer-facing product as well. This technical excellence is in our DNA, and I’m excited about the next phase of building.”

Zepto plans to go public by 2025 as “a profitable, growing technology company that customers love,” the company said.

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The funding makes Zepto the first unicorn from India this year amid a protracted slowdown in the economy that has significantly hurt the appetite of investors. Indian startups raised a mere $5.46 billion in the first half of 2023, a substantial 68% decline from the $17.1 billion during the same timeframe in 2022 and a drop from $13.4 billion in H1 2021, according to market intelligence firm Tracxn.

“It feels like I’ve been making fewer investments this year because Zepto keeps the comparative bar so high,” Will Robbins, GP at Contrary, an early-backer of Zepto, told TechCrunch.

​ Instant grocery delivery startup Zepto has raised $200 million in a new funding round at a valuation of $1.4 billion, it said Friday, at a time when most other firms in the category have either died or are struggling. The funding makes Zepto the first Indian startup to attain the unicorn status this year. StepStone 

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US May Completely Cut Income Tax Due to Tariff Revenue

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President Donald Trump says the United States might one day get rid of federal income tax because of money the government collects from tariffs on imported goods. Tariffs are extra taxes the U.S. puts on products that come from other countries.

What Trump Is Saying

Trump has said that tariff money could become so large that it might allow the government to cut income taxes “almost completely.” He has also talked about possibly phasing out income tax over the next few years if tariff money keeps going up.

How Taxes Work Now

Right now, the federal government gets much more money from income taxes than from tariffs. Income taxes bring in trillions of dollars each year, while tariffs bring in only a small part of that total. Because of this gap, experts say tariffs would need to grow by many times to replace income tax money.

Questions From Experts

Many economists and tax experts doubt that tariffs alone could pay for the whole federal budget. They warn that very high tariffs could make many imported goods more expensive for shoppers in the United States. This could hit lower- and middle‑income families hardest, because they spend a big share of their money on everyday items.

What Congress Must Do

The president can change some tariffs, but only Congress can change or end the federal income tax. That means any real plan to remove income tax would need new laws passed by both the House of Representatives and the Senate. So far, there is no detailed law or full budget plan on this idea.

What It Means Right Now

For now, Trump’s comments are a proposal, not a change in the law. People and businesses still have to pay federal income tax under the current rules. The debate over using tariffs instead of income taxes is likely to continue among lawmakers, experts, and voters.

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Epstein Files to Be Declassified After Trump Order

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Former President Donald Trump has signed an executive order directing federal agencies to declassify all government files related to Jeffrey Epstein, the disgraced financier whose death in 2019 continues to fuel controversy and speculation.

The order, signed Wednesday at Trump’s Mar-a-Lago estate, instructs the FBI, Department of Justice, and intelligence agencies to release documents detailing Epstein’s network, finances, and alleged connections to high-profile figures. Trump described the move as “a step toward transparency and public trust,” promising that no names would be shielded from scrutiny.

“This information belongs to the American people,” Trump said in a televised statement. “For too long, powerful interests have tried to bury the truth. That ends now.”

U.S. intelligence officials confirmed that preparations for the release are already underway. According to sources familiar with the process, the first batch of documents is expected to be made public within the next 30 days, with additional releases scheduled over several months.

Reactions poured in across the political spectrum. Supporters praised the decision as a bold act of accountability, while critics alleged it was politically motivated, timed to draw attention during a volatile election season. Civil rights advocates, meanwhile, emphasized caution, warning that some records could expose private victims or ongoing legal matters.

The Epstein case, which implicated figures in politics, business, and entertainment, remains one of the most talked-about scandals of the past decade. Epstein’s connections to influential individuals—including politicians, royals, and executives—have long sparked speculation about the extent of his operations and who may have been involved.

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Former federal prosecutor Lauren Fields said the release could mark a turning point in public discourse surrounding government transparency. “Regardless of political stance, this declassification has the potential to reshape how Americans view power and accountability,” Fields noted.

Officials say redactions may still occur to protect sensitive intelligence or personal information, but the intent is a near-complete disclosure. For years, critics of the government’s handling of Epstein’s case have accused agencies of concealing evidence or shielding elites from exposure. Trump’s order promises to change that narrative.

As anticipation builds, journalists, legal analysts, and online commentators are preparing for what could be one of the most consequential information releases in recent history.

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Politics

Netanyahu’s UN Speech Triggers Diplomatic Walkouts and Mass Protests

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What Happened at the United Nations

On Friday, Israeli Prime Minister Benjamin Netanyahu addressed the United Nations General Assembly in New York City, defending Israel’s ongoing military operations in Gaza. As he spoke, more than 100 delegates from over 50 countries stood up and left the chamber—a rare and significant diplomatic walkout. Outside the UN, thousands of protesters gathered to voice opposition to Netanyahu’s policies and call for accountability, including some who labeled him a war criminal. The protest included activists from Palestinian and Jewish groups, along with international allies.

Why Did Delegates and Protesters Walk Out?

The walkouts and protests were a response to Israel’s continued offensive in Gaza, which has resulted in widespread destruction and a significant humanitarian crisis. Many countries and individuals have accused Israel of excessive use of force, and some international prosecutors have suggested Netanyahu should face investigation by the International Criminal Court for war crimes, including claims that starvation was used as a weapon against civilians. At the same time, a record number of nations—over 150—recently recognized the State of Palestine, leaving the United States as the only permanent UN Security Council member not to join them.

International Reaction and Significance

The diplomatic walkouts and street protests demonstrate increasing global concern over the situation in Gaza and growing support for Palestinian statehood. Several world leaders, including Colombia’s President Gustavo Petro, showed visible solidarity with protesters. Petro called for international intervention and, controversially, for US troops not to follow orders he viewed as supporting ongoing conflict. The US later revoked Petro’s visa over his role in the protests, which he argued was evidence of a declining respect for international law.

BILATERAL MEETING WITH THE PRIME MINISTER OF ISRAEL Photo credit: Matty STERN/U.S. Embassy Jerusalem

Why Is This News Important?

The Gaza conflict is one of the world’s most contentious and closely-watched issues. It has drawn strong feelings and differing opinions from governments, activists, and ordinary people worldwide. The United Nations, as an international organization focused on peace and human rights, is a key arena for these debates. The events surrounding Netanyahu’s speech show that many nations and voices are urging new action—from recognition of Palestinian rights to calls for sanctions against Israel—while discussion and disagreement over the best path forward continue.

This episode at the UN highlights how international diplomacy, public protests, and official policy are all intersecting in real time as the search for solutions to the Israeli-Palestinian conflict remains urgent and unresolved.

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