Zepto, an instant grocery delivery app based in Mumbai, has secured $665 million in funding at a valuation of $3.6 billion, underscoring robust investor confidence in India’s quick commerce sector. The latest round, primarily a fresh capital infusion, was co-led by existing investors Glade Brook, Nexus, and StepStone, with significant contributions from new backers including Avenir Growth, Lightspeed, Avra, and others. Notably, DST Global, a key investor in Swiggy, emerged as the largest new investor, injecting around $100 million into Zepto.
This fundraising effort marks a notable achievement for Zepto, which has achieved rapid growth by surpassing $1 billion in gross merchandise value (GMV) within just 2.5 years—a feat described as unprecedented in the internet industry. The company has also achieved profitability in 75% of its markets, a crucial factor contributing to investor confidence.
Zepto plans to utilize the funds to expand into new markets such as Jaipur, Chandigarh, Ahmedabad, and others, while intensifying its presence in existing key cities like Mumbai, Delhi, and Bengaluru. The company aims to double its network of dark stores from 350 to over 700 by March 2025, aligning with similar expansion strategies seen in competitors like Blinkit, Swiggy Instamart, and BigBasket’s BB Now.
Moreover, Zepto anticipates a significant boost in its advertising income, targeting to grow this segment into a Rs 1,000 crore business within the next 12 months. This additional revenue stream complements its core quick commerce operations, driven by strong demand and effective ad monetization strategies.
In terms of operations, Zepto plans to increase its workforce to approximately 2,200 employees, up from 1,700 currently, to support its expansion into new pin codes and maintain operational efficiency in emerging markets. These regions, characterized by lower offline penetration and operational costs, present attractive opportunities for Zepto to achieve faster profitability compared to metro cities.
Furthermore, Zepto is in the process of relocating its domicile from Singapore back to India, a move aligned with a broader trend among Indian startups preparing for potential public listings in their home country.
Founded in 2021 by Palicha and Kaivalya Vohra, Zepto has positioned itself as a key player in India’s quick commerce landscape, leveraging a network of dark stores to fulfill approximately 5.5 lakh orders daily across seven cities.
