📈 Zepto's Rapid Growth
Zepto, a 10-minute delivery app based in Mumbai, has secured $665 million in a new round of funding. This round more than doubles its valuation from $1.4 billion to $3.6 billion in less than a year. Zepto, founded by Aadit Palicha and Kaivalya Vohra, has been growing rapidly in the quick commerce market in India. The company delivers a variety of items, from groceries to electronics, within minutes in urban Indian cities.
🏪 Series F Funding Details
The Series F funding round was led by Glade Brook, Nexus, and StepStone Group. Other investors include Avenir, Lightspeed, Avra, Goodwater, Lachy Groom, and Contrary. DST Global, an early backer of Swiggy, also participated. Zepto aims to use these funds to expand its network of dark stores to over 700 by March 2025. These dark stores are strategically located to ensure quick delivery times, and about 75% of them were EBITDA positive as of last month.
📊 Market Impact and Expansion
Zepto's quick commerce model has gained traction in India, a $4 trillion economy, even as similar models struggled in other markets. Zepto competes with BlinkIt (owned by Zomato) and Swiggy’s Instamart. The company’s revenue has risen 140% from the previous year, and its annualized gross merchandise value (GMV) is on track to exceed $1 billion. Zepto employs over 50,000 delivery partners, adding over 5,000 each month.
🛍️ Future Plans
Zepto plans to expand to smaller cities and offer a range of products, focusing on lower-stake purchases like household items, toys, and cosmetics. Co-founder Aadit Palicha highlighted the importance of hyper-local buying in India, which has helped Zepto thrive. If the company continues to delight customers, Palicha believes Zepto will be ready to go public soon. Industry analysts predict that quick commerce could significantly impact major e-commerce players like Amazon and Flipkart, with a market potential of about $150 billion in the top 40-50 cities, according to Goldman Sachs.
Will Zepto's quick commerce model transform Indian retail?
