Zepto, an Indian quick commerce startup, has raised a whopping $665 million in a new funding round, more than doubling its valuation to $3.6 billion from $1.4 billion in less than a year. This massive funding round reflects the startup’s aggressive efforts to capture the burgeoning quick commerce market in India.
Zepto offers a 10-minute delivery service for everything from groceries to electronic gadgets in urban Indian cities. The company’s rapid-delivery model is thriving in India, even as similar business models have struggled in developed markets. The funding round was co-led by Glade Brook, Nexus, and StepStone Group, with participation from Avenir, Lightspeed, and Avra, among others.
The company plans to expand its network of dark stores to over 700 by March 2025. Zepto’s revenue has risen 140% from a year earlier, and its annualized gross merchandise value (GMV) is on track to exceed $1 billion. The company works with over 50,000 delivery partners and is adding over 5,000 delivery partners each month. About 75% of its dark stores were EBITDA positive as of last month.
Despite the success of quick commerce firms in India, the growth of these companies has surprised many investors and analysts, especially given the collapse of similar business models in other markets. However, the convenience of having groceries delivered to their doorstep in just 10 minutes has won over consumers in urban cities.
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