A report from The Information revealed that Zepto is looking to raise $400 million from investors, which would bring the company’s value to $4.6 billion. This comes shortly after Zepto raised $665 million during its funding round, valuing it at $3.6 billion.

With the 25% increase in valuation compared to the previous one, Zepto plans to utilise the new funds to increase the number of dark stores (small warehouses) from 350 to 700 by March 2025. The company’s gross merchandise value (GMV) reached over $1 billion in sales by May 2024, with 75% of its stores achieving earnings before interest, taxes, depreciation, and amortization (EBITDA).

Founded by Palicha and Vohra in 2021, Zepto is a Mumbai-based quick commerce startup that became a billion-dollar company in 2023, leveraging the demand for quick 10-minute deliveries. It aims to go public in 2026. Last year, Zepto’s revenue grew significantly, though its losses also increased.

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Zepto competes with other quick-delivery services like Blinkit and Swiggy Instamart. Walmart’s Flipkart and Tata’s BBnow also want to invest in this fast-growing market. The quick commerce industry in India grew 77% last year, reaching $2.8 billion in value.

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