Zepto raises $665 million, tripling its valuation in a year

What is going on here?

Zepto, an Indian food startup, raised $665 million in its second round of funding this year, raising its valuation to $3.6 billion from $1.4 billion in August last year.

What does it mean?

In just a year, Zepto has tripled its valuation, attracting investments from Avenir Growth Capital, Lightspeed Venture Partners and newcomer Avra ​​Capital. Competing with Blinkit and Instamart and facing growing competition from Flipkart, Zepto has carved a niche in India’s booming fast-commerce market. The $5 billion or 45% of India’s online grocery market is expected to grow to $60 billion by 2030.

Why should I care?

For markets: A race against time and great challengers.

Zepto’s share in the fast trading market has impressively increased to 28%, while Blinkit and Instamart have 40% and 32% respectively. With plans to double the number of dark stores to over 700 by March 2025, Zepto aims to further strengthen its distribution network in the face of fierce competition. The windfall profit of $665 million will fuel expansion efforts, positioning Zepto as a key player in the growing market.

Larger image: High-speed trading is revolutionizing retail.

Fast trading tendency is redefining the retail landscape, not only for groceries, but also for technology accessories and gifts. This growth is impacting traditional mom-and-pop stores as e-commerce giants like Amazon and Walmart-owned Flipkart compete fiercely. With over 75% of dark stores already profitable at a basic operating level and gross merchandise value exceeding $1 billion, Zepto’s expansion could shape the future of retail in India.