Zepto sets eyes on D-Mart

Zepto raised $665 million at a $3.5 billion valuation in a macro-defying investment, by promising to build India's Walmart.

Why it matters: The investment comes amidst growing competition for food and grocery delivery from established players like Zomato, Swiggy, as well as incumbents like Reliance, Tata jockeying for market share.

Between the lines: Zepto will use the capital to expand its dark store network to 700 by 2025.

• "The startup says its annualized gross merchandise value (GMV) is on track to exceed $1 billion" reported TechCrunch.
• 75% of its dark stores are EBITDA positive.

The intrigue: Quick commerce is rapidly eroding the market share of traditional e-commerce companies, such as Flipkart and Amazon.

• "We’re not really getting into smartphones, high-ticket fashion and laptops. We’re more interested in categories that are relatively lower-stake purchases, like household appliances, undergarments, general merchandise, toys, beauty and cosmetics, and home and kitchen products. We’re seeing resonance there," reported TechCrunch, citing the CEO Aadit Palicha.

In a recent interview to Moneycontrol, the CEO claimed a direct goal of taking on D-Mart, India's largest local grocery chain, in the next 18 to 24 months.

Zoom out: India spends $700 billion on groceries every single year, with a large part of this spending still unorganized. This makes the market consequential for large brands, and standardization is capable of delivering massive profit pools.