Zepto, a 10-minute delivery app, secures $665 million at a valuation of $3.6 billion

Zepto, a Mumbai-based startup focused on quick commerce, has successfully raised an impressive $665 million in its latest funding round, which catapulted its valuation to $3.6 billion. This valuation marks a significant increase from its previous valuation of $1.4 billion less than a year ago, highlighting the rapid growth and investor confidence in the company.

The Series F round was described as “highly-oversubscribed” and was co-led by Glade Brook, Nexus, and StepStone Group. A number of other prominent investors participated, including Avenir, Lightspeed, Avra (founded by Anu Hariharan), and existing backers such as Goodwater, Lachy Groom, and Contrary.

Although DST Global, an early supporter of Zepto’s competitor Swiggy, was reported by sources to have co-led the funding round, Zepto did not confirm DST Global’s involvement and declined to comment on the matter.

Zepto operates in the competitive quick commerce sector in India, competing directly with BlinkIt (owned by Zomato) and Swiggy’s Instamart. These companies have leveraged the concept of “dark stores” — discrete warehouses strategically located near high-demand areas in urban centers. This setup allows them to fulfill orders swiftly, often within minutes, catering to the growing demand for rapid delivery of a wide range of products from groceries to electronics.

The success of Zepto’s latest funding round underscores the booming interest in quick commerce services in India, where the model has thrived despite challenges faced by similar startups in more developed markets. The infusion of capital is expected to bolster Zepto’s expansion efforts, potentially enabling it to further solidify its position in the competitive Indian quick commerce landscape.