Zilo, a Mumbai-based fashion-tech platform, has raised US$4.5 million in a seed funding round led by Info Edge Ventures and Chiratae Ventures.

The funds will be used to refine its business model, expand brand partnerships, and grow beyond Mumbai into major Indian cities by the end of 2025.

The platform uses a hybrid supply model combining dark stores and brand outlets, enabling fashion deliveries in under 60 minutes.

It also offers doorstep trials and instant returns, blending online convenience with offline shopping.

Zilo features over 250 brands, including Levi’s, Puma, and United Colors of Benetton.

🔗 Source: Zilo

🧠 Food for thought

1️⃣ Quick commerce’s fashion expansion faces profitability and sustainability hurdles

ZILO’s entry into fashion quick commerce comes as the broader quick commerce sector faces serious viability questions despite its explosive growth.

The Indian quick commerce market expanded from $0.5 billion in FY22 to $3.3 billion in FY24, but leading players continue to report significant financial losses despite this growth.

India’s quick commerce market is projected to reach $9.95 billion by 2029, but faces challenges including high operational costs, limited addressable market beyond urban centers, and tapering user growth1.

Existing quick commerce leaders like Blinkit (46% market share), Zepto, and Swiggy Instamart already struggle with sustainability despite focusing on high-frequency grocery purchases2.

ZILO’s fashion-focused quick commerce model adds additional complexity through features like 30-minute home trials and instant returns, potentially increasing operational costs compared to traditional delivery-only models.

2️⃣ Entering a highly competitive fashion e-commerce landscape dominated by established players

ZILO faces competition from deeply entrenched fashion e-commerce players with significant market share and customer loyalty.

Myntra leads India’s online fashion market with over 60 million active users and features like AI Stylist that already address personalized styling needs similar to ZILO’s “Ask ZILO” feature3.