Indian startup Zepto raises $340M in Series G round, boosting its valuation to $5B, up from $3.6B in June. Competing in India’s quick-commerce market, Zepto plans to expand its dark stores to over 700 by March 2025, while Amazon lags behind.
Zepto, an Indian quick-commerce startup, has raised $340M in a Series G round, co-led by General Catalyst and Mars Growth Capital. This latest investment values Zepto at $5B, a significant increase from $3.6B in June and $1.4B last August. Zepto has raised nearly $1B this year, reflecting the intense competition in India’s quick-commerce market. The company delivers everything from groceries to electronics in minutes and aims to outpace rivals like Blinkit and Swiggy’s Instamart.
India’s quick-commerce market is heating up, with companies like Zepto, Blinkit, and Swiggy’s Instamart vying for market share. Zepto is expected to generate over $1.5B in annualized sales, while Blinkit aims for $2B. Quick-commerce is projected to account for 50% of online grocery sales by 2025. Analysts are surprised by the rapid success of quick-commerce in India, especially since similar models have struggled in developed markets like the U.S. and Europe.
Zepto is expanding rapidly, with plans to grow its network of dark stores to over 700 by March 2025. These stores, strategically located near high-demand areas, allow Zepto to fulfill orders within minutes. The startup’s revenue increased by 140% year-over-year, and 75% of its dark stores were EBITDA-positive as of May. Improved efficiency has shortened the time to profitability from 23 months to just 6 months for new stores.
Retail in India, a $1.1T market, remains largely unorganized, dominated by small businesses. Zepto’s rise highlights the growing traction of quick-commerce, challenging traditional e-commerce giants like Amazon. Despite investing over $7B in India, Amazon has been slow to adapt, losing ground to more agile players like Zepto, Blinkit, and Flipkart. Market analysts believe that quick-commerce companies could generate up to $5B in revenue this year, with Zepto leading the charge.
Will Zepto outpace Amazon in India’s evolving market?
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