Zepto, a Mumbai-based quick commerce startup, has raised $200 million in a Series D round led by the Y Combinator Continuity Fund, which also had led its last funding round less than three months ago.

While existing investors, including Nexus Venture Partners, Glade Brook Capital Partners, and Lachy Groom, increased their investment in Zepto, US-based Kaiser Permanente Ventures joined as a new investor.

The startup will utilise the funds to take its presence to 24 cities in the next year from the existing 11, including non-metro cities.

Zepto | Groceries Delivered In 10 minutes

Founded by Aadit Palicha and Kaivalya Vohra in 2021, Zepto wants to enter at least 10 new locations outside the metros In the next few months. It started by delivering groceries and daily essentials in 10 minutes across Mumbai and now caters to customers in Delhi, Bengaluru, and Hyderabad, among other cities.

The Mumbai-based quick commerce startup has been growing extensively, with its team size growing to over 1,000 employees from 400 members in December 2021.

As per Aadit Palicha, Co-founder and CEO of Zepto, the startup is looking pretty good with the expansion plan, and they are opening a new dark store almost every 48 hours.

He added,

“We have been able to significantly reduce our last-mile delivery and operations burn, and this is what is giving investors confidence to back us.”

Quick commerce is the latest addition to the ecommerce delivery space that gained prominence amidst the COVID-19 pandemic. Zepto, which promises grocery deliveries in 10 minutes, now faces intense competition from well-capitalised players like Reliance Industries-backed Dunzo, Swiggy, and Tata Digital-owned BigBasket.

In December 2021, food delivery platform Swiggy earmarked $700 million to scale up its ultra-fast commerce platform Instamart. Not only Swiggy Instamart, but players including Blinkit (earlier Grofers) and Dunzo are also all in to take a piece of this quick commerce space pie.

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