Since June, Zepto has raised over $1.35 billion, underscoring its rapid growth and competitive position in India's quick-commerce sector, which is projected to surpass $6 billion in sales this year.

In its third funding round within six months, Zepto secured $350 million, maintaining a valuation of $5 billion as it prepares for a planned IPO in 2025.

This investment round attracted notable contributions from prominent Indian family offices, wealthy individuals, and asset manager Motilal Oswal, reflecting a strong interest in domestic investment.

This funding round is significant as it represents the largest fully-domestic primary round in India, with Zepto aiming to increase local investor participation amid concerns over foreign ownership exceeding two-thirds.

The quick-commerce market is anticipated to reach $42 billion by 2030, accounting for 18.4% of total e-commerce and 2.5% of retail sales, prompting established players to enhance their delivery speeds.

Currently, Zepto and its competitors, including Blinkit and Instamart, operate at lower margins than traditional retail, but they expect to improve these margins by 2030.

The rise of quick-commerce has led to significant closures of traditional mom-and-pop stores, with approximately 200,000 neighborhood stores shutting down in the past year, including 90,000 in major cities.

The All India Consumer Products Distributors Federation has warned that without regulatory intervention, further closures of traditional stores are likely, as quick-commerce prioritizes rapid growth over sustainability.

Regulatory challenges loom for quick-commerce firms, as current laws require e-commerce companies to be majority-owned by Indian entities to operate on an inventory model, which many quick-commerce firms do not comply with.

Quick-commerce has thrived in India due to the prevalence of unorganized retail stores, creating a 'parallel commerce' model that caters to convenience-seeking customers.

Zepto claims to have created numerous gig job opportunities and emphasizes its commitment to nation-building and enhancing services for Indian consumers.

Currently, Zepto is spending about $35 million monthly while fulfilling over 7 million orders daily across 17 cities, projecting annual sales of $2 billion and a remarkable growth rate of 150% over the next year.