Peak XV Partners to join quick-commerce race with investment in fashion startup Zilo

Peak XV Partners to take first major bet in quick commerce with fashion startup Zilo

Peak XV Partners, formerly Sequoia Capital India, is set to make its first major investment in India’s rapidly growing quick-commerce market by backing fashion-focused delivery startup Zilo, Moneycontrol has learnt.

The move marks a shift for the venture capital firm, which largely steered clear of the sector even as other marquee investors rushed in.

Mumbai-based Zilo is in talks to raise about $5-8 million from Peak XV in an early-stage funding round, sources said.

This would mark Peak’s first significant bet on vertical quick commerce, a model where companies focus on delivering a narrow category of products such as fashion, home services or baby care unlike horizontal players like Blinkit, Instamart and Zepto, which offer a wide variety of items.

The investment would significantly strengthen Zilo’s cap table as it enters a highly competitive market.

The potential fund infusion follows an earlier seed round in July, where Zilo raised $4.5 million led by Info Edge Ventures and Chiratae Ventures.

The company said it would use the funds to build its supply chain, deepen partnerships with fashion brands, and expand beyond Mumbai to other top-tier Indian cities by the end of 2025.

Founded earlier this year by Padmakumar Pal, a former senior executive at ecommerce platforms Flipkart and Myntra, and Bhavik Jhaveri, Zilo delivers fashion and lifestyle products from more than 250 brands, including Levi’s, Louis Philippe, Puma and The Souled Store, in under 60 minutes.

Zilo and Peak XV Partners did not respond to queries sent by Moneycontrol.

The move comes at a time when investor appetite for fashion-focused quick commerce has picked up, driven by shifting consumer habits and growing demand for near-instant delivery in niche categories.

Alongside Zilo, players such as Slikk, KNOT, Zulu Club and NewMe have also raised fresh funds in recent months to cater to urban shoppers seeking apparel in under an hour, Moneycontrol reported earlier.

The space has already attracted marquee backers such as Accel, Lightspeed India and Nexus Venture Partners.

The momentum is not limited to fashion. Quick commerce models are also gaining ground in other segments such as home services and baby care, where companies promise faster doorstep delivery.

Also read: ‘Quick is not the only reason they exist’: Lightspeed’s Rahul Taneja on the rise of vertical quick commerce

To be sure, Peak XV has had limited exposure to India’s quick-commerce space, so far, after taking a small bet in Blinkit. The firm participated in a $500,000 seed round in 2014 for Blinkit, then known as Grofers, according to Tracxn data.

For Peak XV, Zilo could be a test case — if vertical quick commerce models can achieve scale and sustainable margins in India’s crowded rapid delivery market.