Zepto has secured $350 million in its third funding round within six months, keeping its valuation at $5 billion as it plans an IPO next year. This funding, led by Indian investors like Motilal Oswal and family offices from Mankind Pharma, Haldiram’s, and others, marks India’s largest domestic primary round. Celebrity backers include Amitabh Bachchan and Sachin Tendulkar.
Handling over 7 million daily orders across 17 cities, Zepto projects annualized sales of $2 billion and expects 150% growth in the next year. Quick-commerce in India, valued at $6 billion in 2023, could reach $42 billion by 2030, driven by consumer convenience. Competitors like Blinkit and Instamart are also accelerating delivery speeds to stay competitive.
However, this growth is impacting traditional retail. About 200,000 neighborhood stores shut down in the last year, prompting calls for regulatory action. Zepto, meanwhile, highlights its role in job creation for gig workers and boosting consumer access. Yet, concerns about compliance with India’s e-commerce ownership rules persist.
Despite operating at lower margins, analysts predict quick-commerce firms will achieve sustainable profitability by 2030 as they reshape India’s retail landscape.
