Peak XV Enters Fast Lane with Zilo's 60-Minute Fashion Gamble
- Peak XV to invest ~$5M in fashion-focused delivery startup Zilo.
- Zilo delivers fashion & lifestyle products from 250+ brands in under 60 minutes.
- Funds to boost supply chain and expand beyond Mumbai by 2025.
Peak XV Partners, formerly Sequoia Capital India, is set to make its first major move in India’s burgeoning quick-commerce segment by backing fashion-focused delivery startup Zilo. The venture capital firm, which has so far kept a low profile in the space, is in advanced talks to invest about $5 million in Mumbai-based Zilo in an early-stage funding round.
The deal would mark Peak XV’s debut in vertical quick commerce a model where platforms specialise in a narrow category such as fashion, home services or baby care, in contrast to horizontal players like Blinkit, Instamart and Zepto that offer a wide variety of products.
Founded earlier this year by Padmakumar Pal, a former senior executive at Flipkart and Myntra, and Bhavik Jhaveri, Zilo delivers fashion and lifestyle products from over 250 brands, including Levi’s, Louis Philippe, Puma and The Souled Store, in under 60 minutes. The startup raised $4.5 million in a seed round in July, led by Info Edge Ventures and Chiratae Ventures.
The fresh capital from Peak XV is expected to bolster Zilo’s supply chain, deepen partnerships with fashion brands, and fuel expansion beyond Mumbai to other top-tier cities by the end of 2025. Sources suggest the investment could significantly strengthen the company’s competitive positioning in the fast-growing but challenging market.
Investor interest in fashion-focused quick commerce has been gaining momentum, driven by evolving consumer habits and demand for instant gratification in niche categories. In recent months, several players such as Slikk, KNOT, Zulu Club and NewMe have also secured funding to serve urban customers looking for apparel deliveries within an hour. The space has already drawn heavyweight backers like Accel, Lightspeed India and Nexus Venture Partners.
Quick commerce’s growth is not confined to fashion. Other verticals, including home services and baby care, are also seeing rapid adoption, with companies promising swift doorstep fulfilment.
Peak XV’s previous exposure to India’s quick commerce has been limited. The firm’s only notable investment in the segment was a $500,000 participation in Blinkit’s seed round in 2014, back when the company was known as Grofers.
Industry observers say the Zilo deal could serve as a litmus test for Peak XV to gauge whether vertical quick commerce can scale profitably in India’s crowded rapid delivery market. With competition heating up and consumers increasingly seeking speed and convenience, the segment’s next phase may well be shaped by how well specialised players like Zilo execute their growth strategies.
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