November 22, 2024: Zepto, touted to be India’s fast-growing quick commerce player, has secured $350 million in its latest funding round, to strengthen its market dominance and outpace its rivals in Quick Commerce business, as part of its ongoing rapid expansion strategy.
This latest raise by the online grocery app brings the total funding secured by the company to $1.35 billion in 2024 alone. This round follows a series of substantial investments, including a $340 million infusion just three months ago and a $665 million raise earlier this year. With such backing, Zepto is set to continue its aggressive push in the competitive Indian quick commerce market.
Zepto Expansion continue to outpace rivals
The fresh capital will further fuel Zepto’s aggressive growth strategy, with the company now operating over 550 dark stores across 17 cities. Zepto’s expansion continues to outpace rivals, as it holds a significant 29% market share in the quick commerce segment, trailing only Blinkit, which holds 46%, according to Q1 FY25 data.
Motilal Oswal, the leader of this funding round, is a strong supporter of the online grocery app potential, citing its position as a future powerhouse in digital businesses. The round also included notable investors such as Avenir, Lightspeed, and Avra, as well as family offices of major Indian conglomerates and figures in the business world.
In addition to its rapid store network expansion, Zepto is also pushing forward with its new Zepto Cafe initiative, which has already achieved over Rs 160 crore in annualized revenue run-rate.
Furthermore, the company aims to scale this service to a Rs 1,000 crore business by next year, tapping into higher average order values by offering small snacks and drinks alongside groceries.
As the quick commerce space heats up, with players like Swiggy and Blinkit expanding their footholds, the online grocery app targeted focus on both market share and customer value could define its trajectory in the coming year, especially as larger ecommerce and retail giants take notice.
