Mumbai-based quick commerce startup Zepto has set ambitious targets for expansion across India, aiming to double its network of warehouses, known as dark stores, to 700 by March 2025. This announcement follows the company’s latest funding round where it secured $665 million, propelling its valuation to $3.6 billion—more than doubling its previous valuation of $1.4 billion just nine months ago.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, both former Stanford University students, Zepto began as a grocery delivery service but has rapidly diversified into delivering a wide range of products including apparel and toys. Competing in India’s burgeoning quick commerce sector, Zepto has positioned itself as a major player alongside rivals such as Blinkit by Zomato, Instamart by Swiggy, and BBnow by Tata Group’s BigBasket.
Aadit Palicha, CEO and co-founder of Zepto, highlighted the company’s rapid growth and financial discipline, noting, “The dynamic of stores turning profitable faster has enabled Zepto to scale rapidly while achieving near EBITDA positivity at a company level.” Currently, about 75% of Zepto’s warehouse outlets are operating profitably, with stores now becoming profitable within six months compared to 23 months previously.
With projections to achieve over $1 billion in gross merchandise value (GMV) by the end of the fiscal year in March 2025, Zepto appears poised for further growth. Palicha expressed readiness for a potential public listing, stating, “We will be ready to go public relatively soon if the momentum continues.”
The recent funding round attracted significant interest from investors including private equity firm Avenir, venture capital firm Lightspeed, and Avra—a fund started by former Y Combinator Continuity head Anu Hariharan. Existing investors Glade Brook Capital Partners, Nexus, and StepStone Group also participated, underscoring confidence in Zepto’s business model and growth prospects.
Zepto plans to utilize the capital infusion to fuel its expansion strategy, reinvesting profits from mature stores back into the business. This strategy aligns with its goal of doubling the number of dark stores from the current 350 to 700 within the next year, expanding its reach and operational efficiency across India. It is worth noting that Zepto is one of the leading quick commerce platforms in the country after Zomato’s Blinkit.
