In a major development in the quick commerce sector, Mumbai-based Zepto has raised $665 million in a Series F funding round that more than doubles its valuation to $3.6 billion. Glade Brook Capital, Nexus Venture Partners and StepStone Group co-led the investment round for the hyperlocal delivery startup.
Founded by Aadit Palicha and Kaivalya Vohra in 2023, Zepto operates a network of mini-warehouses or ‘dark stores’ in urban areas across India. This enables the app to fulfill grocery and everyday essential deliveries to customers within 10 minutes. With demand for such rapid delivery rising, the company has seen revenue climb 140% over the past year.
The new funds will help Zepto further expand its presence. Plans are in place to take the total number of dark stores to over 700 by March 2025. Currently serving major cities, Zepto also aims to gradually enter select smaller towns. Around 75% of existing facilities have now reached profitability within just six months.
Efficiency and scale improvements mean dark stores that previously turned a profit after two years can now do so in half that time. The high-profile round validates Zepto’s 10-minute commerce model and bodes well for continued growth. Backers cite strong unit economics and a clear path to profitability as major draws.
This massive funding round establishes Zepto as a leader in India’s booming quick commerce space. It will be fascinating to see how the company can maintain its torrid pace of expansion nationwide and potentially reshape grocery shopping habits. With stellar growth and financials, an initial public offering may not be too far down the line.