Indian grocery startup Zepto has raised $665m in an investment round, less than a year after its previous fundraising. 

The latest funding brings the retailer’s value to $3.6bn, a sharp increase from its $1.4bn valuation in August 2023.

Investors in the new round include New York-based Avenir Growth Capital and Lightspeed Venture Partners as well as a first investment from Avra Capital, a fund launched by former Y Combinator and Andreessen Horowitz investor Anu Hariharan.  

Some existing investors also participated, Reuters has reported. 

The deal adds to Zepto’s balance sheet as it competes with Zomato-owned Blinkit and Swiggy’s Instamart in a highly competitive Indian market.   

E-commerce marketplace Flipkart is reportedly preparing to enter the quick commerce space.  

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Indian customers are increasingly adopting quick commerce services, which have recently expanded beyond groceries to sell mobile phones, tech accessories and gifting items.  

Zepto co-founder and CEO Aadit Palicha stated that the company will use the proceeds from the funding to double the count of its dark stores – warehouses located in high-demand neighbourhoods that ship goods – to more than 700 by March 2025.  

The company’s gross merchandise value, or the value of total transactions through the platform, has “multiplied year-on-year to a base of $1bn. Over 75% of its dark stores are profitable at a core operating level”, added Palicha.  

Zepto had a 28% market share as of January 2024, up from 15% in March 2022, according to HSBC.