Zepto Raises $665 Million Boosting Valuation to $3.6 Billion in Series F Funding

Zepto Raises $665 Million Boosting Valuation to $3.6 Billion in Series F Funding

By Staff Writer, 23 June 2024

Mumbai-based startup Zepto has raised $665 million in a Series F funding round, propelling its valuation to $3.6 billion from $1.4 billion within a year. The significant investment underlines Zepto's aggressive strategy to dominate India's quick commerce market, which is thriving despite setbacks in more developed economies.

Zepto offers rapid delivery of a wide range of products, including groceries and electronic gadgets, to urban consumers across India. The company's model of swift delivery has gained popularity, setting it apart in a market where many similar ventures have struggled internationally.

The latest funding round was co-led by Glade Brook, Nexus, StepStone Group, and DST Global, an early backer of Zepto's competitor Swiggy. Other contributors include Avenir, Lightspeed, Avra (led by former YC Continuity exec Anu Hariharan), and existing investors Goodwater, Lachy Groom, and Contrary. Zepto declined to comment on DST Global's involvement.

In the competitive quick commerce sector, Zepto rivals BlinkIt, owned by Zomato, and Swiggy's Instamart. These companies have established a network of "dark stores"—small warehouses strategically placed within urban areas to ensure rapid order fulfillment. Will Robbins, a partner at Contrary, noted that the compact size of these dark stores enables a dense network, facilitating short delivery times.

Zepto plans to expand its dark store network to over 700 locations by March 2025. The startup reported a 140% increase in revenue from the previous year and aims for an annualized gross merchandise value (GMV) exceeding $1 billion. Zepto currently collaborates with over 50,000 delivery partners, adding more than 5,000 new partners each month.

Source: Manish Singh / TechCrunch

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