India grocery startups betting big on quick deliveries
Zepto says raises 200 million, to use funds for expansion
Quick commerce startups have raised road safety concerns
Zepto says its riders don39;t rush, travel short distances

MUMBAI, May 3 Reuters Indian grocery startup Zepto said on Tuesday it has raised 200 million in fresh funding that values the company at around 900 million, signalling growing investor interest in a sector where companies are luring customers with quick 10minute deliveries.

Zepto was started last year by two 19yearold Stanford dropouts. Its latest funding round was led by an existing investor Y Combinator, a prominent Silicon Valley fund.

It also saw participation from a new investor, U.S.based healthcare giant Kaiser Permanente, and all of Zepto39;s key existing investors including Nexus Venture Partners, the company said in a statement on Tuesday.

Zepto competes with SoftBankbacked Blinkit in India, both of which promise 10minute deliveries for groceries. Other rivals including Dunzo, backed by Indian billionaire Mukesh Ambani39;s Reliance, and SoftBankbacked Swiggy are all betting on fast deliveries in the socalled quick commerce sector.

Aadit Palicha, Zepto39;s cofounder and CEO, told Reuters the company was offering services in 11 cities and plans to use the new funds to expand to as many as 24 new cities within the next quarter.

The scale that took food delivery companies years to achieve has taken us months with groceries….