BazaarNow raises Rs 72 crore to bring quick commerce to smaller cities

MUMBAI: While quick commerce giants race through India’s metros, a new entrant is betting the next growth story lies beyond the big cities. BazaarNow has raised Rs 72 crore in a fresh funding round to build a grocery delivery platform tailored specifically for Tier 2 and Tier 3 India.

The round was led by Peak XV Partners, with participation from Whiteboard Capital and Antler. The startup has now raised a total of Rs 80 crore, including its earlier pre-seed funding.

The round also attracted a high-profile group of angel investors, including Vidit Aatrey, former Swiggy Instamart executive Karthik Gurumurthy, Prashant Sachan, Reckitt executive Arjun Purkayastha, Chaayos founder Nitin Saluja, Zeno Health co-founder Siddharth Gadia, FirstClub founder and CEO Ayyappan R, and FirstClub co-founder Aravind Charanyan V.

Founded by former executives from Zepto, Myntra and Swiggy, BazaarNow is positioning itself as a habit-led commerce platform rather than a traditional metro-focused quick commerce business.

The founding trio brings extensive operational expertise to the venture. Co-founder and CEO Priyanshu Jain previously worked at Zepto, where he developed average order value revenue systems and pricing infrastructure. Co-founder Arjun Harish has experience across Zepto, Myntra and Swiggy, while co-founder Tarithmay Mandal has worked on category pricing, promotions and profit-and-loss functions at Zepto and Myntra.

Unlike many quick commerce platforms that replicate urban shopping behaviour, BazaarNow is building its business around the daily habits of middle-class households in smaller towns and cities. The company believes grocery buying in these markets remains heavily influenced by local kirana stores, mandis, convenience, freshness and value-conscious purchasing patterns.

Speaking about the company’s approach, BazaarNow co-founder and chief executive officer Priyanshu Jain said grocery shopping in Tier 2 and Tier 3 India is fundamentally different from ecommerce behaviour in metropolitan markets. He noted that customers prioritise local assortments, fresh produce, simple ordering and transparent pricing over complex discount structures, coupons and wallet-based promotions.

To address these needs, BazaarNow offers a vernacular-first shopping experience with AI-powered local-language search, assisted shopping options, call-to-order support and an in-house logistics and rider management system. The platform is also building its supply chain around faster inventory turnover, particularly in fruits and vegetables, to improve freshness and reliability.

The startup claims to have already achieved significant traction in its pilot market, where it has scaled to more than 1,800 orders per day per store. The performance, according to the company, validates demand for localised product assortments and frequent grocery purchases in smaller city clusters.

Over the next six to 12 months, BazaarNow plans to expand into neighbouring towns and surrounding population centres while broadening its assortment of grocery and daily essential products.

Backing the investment, Peak XV Partners managing director Abhishek Mohan said India’s emerging cities represent one of the country’s largest consumption opportunities. He added that BazaarNow’s leadership team is taking a distinct approach by building a commerce platform designed around local shopping habits and operating realities rather than simply extending metro-centric models into smaller markets.

As India’s quick commerce battle expands beyond major urban centres, BazaarNow is wagering that the future of instant delivery will be won not through flashy discounts, but by understanding how millions of households already shop every day.