• Zepto raised $340 million in a Series G funding round, increasing its valuation to $5 billion.
  • The company plans to expand its network of dark stores to over 700 by March 2025.

Indian quick-commerce startup Zepto has finalized a $340 million Series G funding round, elevating its valuation to an impressive $5 billion. This reflects a substantial growth trajectory, with the company’s valuation rising from $3.6 billion in June and $1.4 billion last August.

The funding round, co-led by General Catalyst and Mars Growth Capital, is expected to close in the coming days, according to sources familiar with the matter.

Zepto, which delivers a diverse range of products from groceries to electronics in minutes, has rapidly established itself as a key player in India’s burgeoning quick-commerce market.

With this latest infusion, Zepto has raised nearly $1 billion in fresh capital this year alone. The company competes fiercely with major rivals such as Blinkit, owned by Zomato, and Swiggy’s Instamart. Additionally, Zepto is projected to generate over $1.5 billion in annualized sales, while Blinkit is expected to reach approximately $2 billion, as indicated by Zomato’s quarterly results.

India’s retail market, valued at $1.1 trillion, remains largely unorganized, dominated by small, family-owned businesses. This presents a significant opportunity for innovative models like quick-commerce.

"This is why any time a new model shows semblance of traction in India retail, investors greatly reward it," an anonymous investor commented.

Zepto’s growth strategy includes expanding its network of "dark stores"—small warehouses strategically placed in high-demand areas—to over 700 by March 2025. These facilities enable rapid order fulfillment, often within minutes, contributing to Zepto’s strong market position. The company also plans to extend its operations to smaller cities, broadening its reach beyond the large urban centers where it currently operates.

In June, Zepto reported that 75% of its dark stores were EBITDA-positive, with profitability timelines reduced from 23 months to just six. As the quick-commerce sector gains momentum in India, Zepto is well-positioned to capitalize on the growing demand, with Goldman Sachs estimating the total addressable market in the top 40-50 Indian cities to be around $150 billion.

Edited by Harshajit Sarmah