Zepto secures $350Mn in third fundraise this year

Zepto, the Indian quick commerce firm, has now secured $350 million in its third funding round in six months. The latest infusion of funds was led by Motilal Oswal Private Wealth. The newest funding round keeps the startup’s valuation to $5 billion — where it was in the previous round. The round has expanded its investor base to include the likes of Raamdeo Agrawal, and family offices tied to Mankind Pharma, Cello, and Haldiram’s, along with celebrity investors such as Sachin Tendulkar and Abhishek Bachchan, to name some.

This funding round comes even as the quick commerce upstart is gearing up for an IPO sometime next year, and is said to be among the largest entirely domestic primary raises in the Indian startup ecosystem. It also comes at a time when the domestic quick commerce segment – in which Zepto operates – has seen a significant growth in recent times. The size of its market was estimated at $6 billion this year, and is projected to rise to $42 billion within the next six years, according to Morgan Stanley. This rapid growth has attracted competition from major players, including Flipkart, Amazon, and BigBasket, as well as rival platforms like Blinkit and Swiggy Instamart.

“We are humbled to have reached a place in India’s economic growth where we’ve not only fostered that trust but also spearheaded a fundraise of this magnitude, which will hopefully set a precedent for the startups that follow,” Aadit Palicha, CEO and Co-founder of Zepto, commented on the matter.

Founded just three years ago by Aadit Palicha and Kaivalya Vohra, Zepto has seen rapid growth in the quick-commerce space, defying most predictions that initially said the segment may not pick up. Zepto operates a network of over 550 dark stores across 17 Indian cities, ensuring that it is able to process over 7 million orders on a daily basis (and bringing deliveries right to the doorsteps of consumers in a matter of minutes). The company’s gross merchandise value (GMV) crossed $1 billion in FY24, supported by a 150% year-on-year growth in annualized sales, which now exceed $2 billion. In fact, nearly 75% of Zepto’s dark stores achieved EBITDA positivity by mid-2024.

Going forward, the firm is positioning itself for a public listing by late 2025 or early 2026, with plans to expand its operations further, including growing its dark store network to 700 locations while introducing new services, including fintech products and Zepto Café. “I think 2026—potentially even late 2025—is a realistic timeline,” Palicha said, adding, “It’s not about profitability today. Investors are betting on our ability to generate $300–500 million in free cash flow in a reasonable timeframe.”

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