Zepto Raises $665M at $3.6B Valuation, Rapidly Expanding in Indian Quick Commerce Market

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Zepto, an Indian quick commerce startup, has significantly boosted its valuation to $3.6 billion from $1.4 billion within a year, raising an impressive $665 million in a Series F funding round. The Mumbai-based startup has more than doubled its worth as it intensifies the competition in India’s quick commerce sector. The funding round was co-led by Glade Brook, Nexus, and StepStone Group, with Avenir, Lightspeed, and Avra, alongside existing investors Goodwater, Lachy Groom, and Contrary, participating as well. DST Global, an early investor in Swiggy, also reportedly co-led the round. Zepto competes with BlinkIt and Swiggy’s Instamart by providing rapid deliveries of groceries and electronics within 10 minutes to consumers in urban Indian cities. Establishing discreet warehouses, known as ‘dark stores,’ in high-demand urban areas has allowed Zepto to fulfill orders within minutes of purchase, attributing to their success in hyper-local deliveries. The startup aims to expand its network of dark stores to over 700 by March 2025, reporting impressive growth with a 140% year-on-year revenue increase. Zepto’s annualized gross merchandise value (GMV) is on track to exceed $1 billion, working with over 50,000 delivery partners and adding 5,000 new partners each month. Zepto’s rapid growth in the Indian market comes as a surprise to many, with its unique value proposition resonating well with customers. Co-founder and CEO Aadit Palicha highlighted the company’s focus on lower-stake purchases like household appliances, toys, and beauty products, instead of high-end electronics. The startup operates in major cities and plans to expand to smaller cities, encouraged by the positive reception in areas like Jaipur. Investors see Zepto’s potential to become a major player in the commerce industry, potentially challenging e-commerce giants like Amazon and Flipkart. With the total addressable market for quick commerce in India’s top cities estimated to be around $150 billion by Goldman Sachs, Zepto’s rapid expansion and success indicate a promising future ahead.