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Zepto, a Mumbai-based startup specializing in rapid delivery services, has secured an impressive $665 million in its latest funding round. This funding round has more than doubled Zepto’s valuation to $3.6 billion in less than a year, highlighting its ambitious push into India’s competitive quick commerce market.
Founded by Aadit Palicha and Kaivalya Vohra at the age of 19, Zepto operates by swiftly delivering a wide range of products—from groceries to electronics—across urban Indian cities. This model has thrived in India, distinguishing itself from similar ventures that struggled in other global markets.
The Series F funding was led by Glade Brook, Nexus, and StepStone Group, with significant participation from Avenir, Lightspeed, Avra, and existing backers like Goodwater and Contrary. DST Global, known for its early investment in Swiggy, also co-led the round, although specifics were not disclosed by Zepto.
Competing with BlinkIt (owned by Zomato) and Swiggy’s Instamart, Zepto operates through a network of strategically located “dark stores” in urban hubs. These facilities enable Zepto to fulfill orders within minutes, leveraging proximity to customer hotspots.
Zepto plans to expand its dark store network to over 700 locations by March 2025, aiming to capitalize on India’s $150 billion market opportunity in grocery and non-grocery quick commerce. The startup boasts rapid growth metrics, with a 140% revenue increase year-over-year and an annualized GMV on track to exceed $1 billion.
Palicha emphasized Zepto’s focus on lower-stake purchases like household goods and cosmetics rather than high-end electronics, aligning with local consumption patterns. The startup currently operates in major Indian cities and eyes expansion into smaller markets like Jaipur, where traditional retail falls short.
Ben Jubas of Avenir sees Zepto breaking traditional retail trade-offs in India, potentially disrupting major e-commerce players. Analysts foresee quick commerce companies reshaping India’s retail landscape, drawing comparisons to similar trends in other sectors.
With momentum from this funding round, Zepto is poised to further solidify its position in India’s bustling quick commerce sector, aiming for a potential public offering in the near future.
