Mumbai-based quick commerce startup Zepto has secured an additional $340 million in funding, boosting its valuation to $5 billion. This latest round, led by US venture capital firm General Catalyst, comes just two months after Zepto’s $665 million pre-IPO funding round. New investors Dragon Fund and Epiq Capital participated, alongside existing backers like StepStone, Lightspeed, DST, and Contrary, who increased their stakes.
Zepto, founded in April 2021 by Aadit Palicha and Kaivalya Vohra during the COVID-19 pandemic, has quickly become a major player in India’s e-commerce sector. The company’s rapid growth has forced established giants like Flipkart and Tata’s BigBasket to pivot towards instant deliveries. The fresh capital infusion will help Zepto double its network of dark stores to 700 by March 2025 as it prepares for a multi-billion-dollar IPO next year.
India’s quick commerce market has seen significant growth, expanding by 77% in 2023 to reach a gross merchandise value (GMV) of $2.8 billion. However, analysts caution that the market’s potential may be limited to metro cities, which could impact growth in the long term. Despite this, Zepto remains focused on its mission to revolutionize India’s e-commerce landscape, positioning itself as a key player in the global quick commerce arena.
Zepto’s remarkable ascent has not only captured the attention of investors but also disrupted traditional retail models. The startup’s focus on instant delivery has challenged conventional mom-and-pop stores, known as kiranas, leading to concerns about their long-term viability. With the quick commerce market becoming increasingly competitive, Zepto’s aggressive expansion plans are set to intensify the race among key players like Blinkit and Swiggy’s Instamart. As Zepto gears up for its public listing, the company is poised to redefine consumer expectations, further solidifying its role as a leader in the evolving e-commerce landscape of India.
