The quick commerce delivery market in India is rapidly evolving, shaped by technological advancements and increasing consumer demand for speed and convenience. The sector is highly competitive, with companies such as Swiggy and Tata-backed BigBasket competing to deliver groceries and essentials as quickly as possible. Among these players, Zepto has emerged as a prominent name, specialising in ultra-fast delivery with a promise to get orders to customers within 10 minutes.
Zepto recently announced securing $340 million in a new funding round. This latest injection of capital has elevated the company’s valuation to $5 billion, up from $3.6 billion following a $665 million round in June. With this new funding, Zepto’s total capital raised now stands at nearly $1.6 billion, with $1 billion secured in 2023 alone.
The Series G round was co-led by Silicon Valley-based General Catalyst, known for its investments in major tech companies such as Stripe, Snyk, Gusto, and Plaid, and Singapore-based Mars Growth Capital, which has backed Asian unicorns like Xendit, PatSnap, and Zalora. Reportedly, General Catalyst is contributing $250 million, while Mars Growth Capital is providing $50 million.
What’s next?
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto is on track to generate over $1.5 billion in annualised sales. The company has introduced several features to strengthen its market position, including Zepto Pass, a loyalty program that launched in February and has already attracted over a million subscribers. Additionally, Zepto plans to expand Zepto Cafe, its quick snack and meal delivery service.
In a competitive landscape that includes rivals like Zomato’s Blinkit, Swiggy’s Instamart, and Tata-backed BigBasket Now, Zepto continues to differentiate itself through rapid delivery and customer-focused innovations. Despite challenges such as declining consumer trust due to issues with product quality and hygiene, Zepto remains committed to its core promise of fast delivery, which continues to drive consumer interest.
Early founding story
Aadit Palicha and Kaivalya Vohra, both young entrepreneurs with strong educational backgrounds—Palicha from Stanford University and Vohra from IIT Bombay—founded Zepto as teenagers. According to sources, both of them chose to drop out in order to pursue their entrepreneurial interests instead. Their company was also part of Y Combinator’s accelerator program, which provided crucial early-stage support. The backing from prominent investors, including Y Combinator, Lightspeed Venture Partners, and Nexus Venture Partners, has been instrumental in Zepto’s growth.
Zepto’s rapid ascent in the quick commerce sector underscores its ability to meet the growing demand for fast and efficient delivery services. As it continues to expand and innovate, the company is well-positioned to solidify its leadership in the instant grocery and snack delivery market.
