Zilo secures $15.3 million in Series A funding round led by Peak XV Partners
06 February 2026, Mumbai
The rapid delivery landscape is evolving beyond groceries as Mumbai-based Zilo secured $15.3 million (Rs 140 crore) in Series A funding on February 5, 2026. Led by Peak XV Partners, with an $8 million commitment, the round signals a major capital shift toward ‘fashion quick commerce.’ Unlike traditional e-commerce, which prioritizes logistics volume, Zilo integrates a high-touch service model featuring 60-minute delivery and doorstep trials. This ‘try-and-buy’ feature directly tackles the industry’s 30 per cent return rate bottleneck by allowing consumers to finalize purchases in real-time.
Vertical integration meets celebrity curation
Zilo is moving beyond being a mere delivery intermediary by onboarding celebrity stylist Anaita Shroff Adajania as Style Director and equity partner. This strategic hire aims to bridge the gap between instant gratification and aspirational fashion. We are replacing endless scrolling with expert-styled looks and the reliability of immediate fulfillment, stated Bhavik Jhaveri, Co-founder and CIO. By utilizing a hybrid network of dark stores and 200+ partner brand outlets, Zilo maintains leaner inventory cycles than legacy players while ensuring ‘fresh-off-the-rack’ availability.
High-velocity competition in the metro market
The startup enters an increasingly crowded arena, competing with Myntra’s M-Now and the recently funded KNOT, which raised $5 million last month. The opportunity is substantial; India’s quick commerce sector is projected to hit a +6-7 per cent contribution margin by the end of 2026 as average order values climb toward Rs 700. Zilo’s primary challenge lies in the high operational cost of its 60-minute trial promise, yet the model offers a critical advantage: it significantly reduces Return-to-Origin (RTO) expenses, a major drain on traditional fashion retail profitability.
Founded in 2025 by former Myntra and Flipkart veterans, Zilo specializes in hyperlocal fashion delivery across Mumbai. The platform is currently expanding its footprint to Tier-1 metros, aiming to capture the Gen Z and millennial demographic. With a focus on premiumization, Zilo projects a move toward EBITDA breakeven as it scales its proprietary tech stack and dark store density through 2027.
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