Year in Review: Zepto’s growth, and big moves in quick commerce

The quick commerce industry has experienced transformative growth, reshaping the way consumers purchase daily essentials. Among its key drivers, Zepto stands out as a significant contributor to this revolution.Founded by two Stanford dropouts, Zepto has become a key contender in the quick commerce space, competing with Zomato‘s Blinkit and Swiggy‘s Instamart. With Swiggy’s public listing in November and Zomato’s debut in July 2021, Zepto remains the sole privately held player among the leading trio.

Also Read: Zepto’s cash burn and the high-stakes game of quick commerce

Funding milestones

In 2024, the Bengaluru-based startup raised over $1 billion in just five months. On November 22, ET reported that Zepto secured $350 million from Indian high net worth individuals (HNIs), family offices, and leading financial institutions. The round was led by Motilal Oswal’s private wealth division.

Earlier in October, ET broke the news about Zepto’s plans to onboard local investors, initially targeting $150 million. By November 15, the round had doubled in size, reflecting heightened investor interest in the quick commerce sector.

Raamdeo Agarwal of the Motilal group, Ranjan Pai of the Manipal group, the Mankind Pharma family office, the Cello family office, Sekhsaria family office, and celebrities like Amitabh Bachchan and Sachin Tendulkar through their family offices also invested in the round.

Also Read: Zepto FY24 report: revenue more than doubles to Rs 4,454 crore; net loss marginally down

IPO plans and domicile shift

ET reported exclusively on September 7 that Zepto has begun active discussions with top Wall Street bankers including Morgan Stanley and Goldman Sachs for an initial public offering (IPO).

In addition, Zepto is in the process of shifting its domicile from Singapore to India, joining a growing list of Indian startups that have recently made this transition.

In an interview with ET, when asked why this is a critical time to be an Indian company, Zepto CEO Aadit Palicha said, “Becoming a majority Indian-owned company builds trust — not just with policymakers, but also with the public and shareholders. It’s an advantage in the long run for creating a strong, trusted brand.”

Palicha further emphasised the importance of shedding the “perception of being a foreign company” to strengthen the company’s identity and appeal.

Also Read: We’re 100% compliant with FDI regulations; aim to be majority India-owned: Zepto’s Aadit Palicha

New ventures

Zepto expanded its offerings with the launch of Zepto Cafe, a standalone app for 10-minute food delivery. The service currently operates across 120 cafes in Mumbai, New Delhi, and Bengaluru, with plans to expand to Hyderabad, Chennai, and Pune.

The company is on track to establish 700 dark stores by March 2025, further solidifying its footprint in the quick commerce ecosystem. However, Blinkit remains the market leader, operating 791 dark stores as of September 30, compared to Swiggy’s Instamart, which has 605 dark stores as of September 10.