Beauty and personal care (BPC) delivery startup Firi is in talks to raise $3-4 million from investors led by 360 One Asset, people familiar with the matter told ET. Founded by former Flipkart executive Vivek Mandani and ex-Uber executive Karishma Rathaur, it is currently operational in some locations of Gurugram.
Stellaris Venture Partners-backed Dazzl, which promises to provide beauty services in 10 minutes, is targeting $10-11 million in funding, and Gen Z-focussed fashion quick commerce startup Klydo, founded by former Udaan senior executive Pradeep Yadav, is looking to raise $10-15 million, according to people in the know. Dazzl will compete with the likes of Urban Company, Yes Madam and Nobroker’s Zivora, which is live in Bengaluru.
Several startups have emerged over the past year to address the growing consumer demand for instant fulfilment. One of those is Instafix, a 30-minute doorstep smartphone repair service startup. VC firms Titan Capital and 8i Ventures co-led a Rs 7.5 crore funding in the Bengaluru-based company.
Despite the grocery quick commerce sector being ruled by early comers Blinkit, Zepto and Instamart—which are starting to show early signs of profitability after aggressive expansion—VCs are bullish about the sector.
Tier-2 focused quick commerce platform BazaarNow, founded by former Zepto executives Priyanshu Jain, Arjun Harish and Tarithnay Mandal, is set to raise $8 million led by Peak XV Partners with participation from Whiteboard Capital and Antler, according to documents filed with the Registrar of Companies.
Firi, Dazzl, Klydo and BazaarNow did not respond to ET’s queries till press time Tuesday. 360 One Asset declined to comment.
Funding rush
The flood of bets across fashion, food, services and more signals that the fear of missing the next Blinkit across verticals is outweighing any near-term pressure for profitability.
According to Amit Sah, founder of Ozi, a quick commerce platform for baby products, VCs are taking a leap of faith on the thesis that “convenience drives profitability”.
“We are targeting people who are seeking convenience of better assortment and the right delivery timeline. So, that convenience will drive profitability is a hunch and leap of faith that investors are taking,” he said. Ozi has raised $10 million far from RTP Global, Blume Ventures, Huddle Ventures and others.
Some large VC funds have taken bets across multiple vertical commerce platforms.
Peak XV made a recent investment in BazaarNow and now has stakes across two rapid commerce startups.
Blume Ventures is leading the chart with investments in Firstclub (quality quick commerce), Knot (fashion), Ozi (baby products) and KiranaPro (quick commerce with local kirana stores). Nexus Venture Partners and Lightspeed Venture Partners have invested in Zepto, Snabbit and Slikk. Similarly, Stellaris Venture Partners invested in Dazzl and Peeko (baby products) last year.
Startups in the quick commerce segment raised $586 million between January 2025 and March 2026, according to Tracxn data.
Profitability in question
ET reported on March 31 how food, medicines, fashion, baby care, construction materials and house help are among a multitude of products and services that are now delivered within 10 minutes to an hour.
“Certain verticals require a specific way in which you address the customer, which is why vertical quick commerce startups are getting established. Some of the driving principles are average order value, frequency and repeat rate,” said Sunitha Viswanathan, partner at Kae Capital, which has invested in fashion vertical commerce Knot.
These funding rounds come even as unit economics and demand across verticals remain unproven. Dazzl, for instance, is currently clocking just 200 orders a day, according to a person in the know. Most of the new startups are competing with horizontal commerce players like Flipkart and Amazon.
“Getting the curation right in a vertical commerce business is essential,” said Ujwal Sutaria, founder of early-stage venture firm TDV Partners. “For instance, a BPC vertical commerce has 100 SKUs (stock keeping units) and only 15-20 SKUs drive 90% of their revenue. If those SKUs are also available on horizontal commerce with better discounts, then it’s a lost opportunity.”