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.  

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.