Zepto, a quick commerce startup, has secured $340 million in a new funding round led by General Catalyst. The investment also saw participation from new investors Dragon Fund and Epiq Capital, as well as increased stakes from existing backers StepStone, Lightspeed, DST, and Contrary. This latest funding round brings Zepto’s valuation to an impressive $5 billion, a significant jump from its previous valuation of $3.6 billion in June when the company raised $665 million.
The total funds raised by Zepto in just two months now stand at a staggering $1.05 billion. Aadit Palicha, co-founder and CEO of Zepto, emphasized the strategic importance of this additional funding. He stated, “The chance to bring on a lead investor of Neeraj Arora’s calibre from General Catalyst was an opportunity we couldn’t miss.
Additionally, reinforcing our balance sheet is a strategic move as the company continues to show strong growth and operating leverage.”
Neeraj Arora, Managing Director at General Catalyst, expressed his confidence in Zepto’s founders and their vision. “Aadit and Kaivalya are exceptional founders who have turned their bold vision for India’s grocery sector into a category-defining company.
Zepto secures new investor partnerships
This is just the beginning, and we’re thrilled to partner with them as they set new benchmarks for the future of e-commerce in India and beyond,” he said. Zepto, founded in 2021 by Aadit Palicha and Kaivalya Vohra, has quickly become a major player in India’s fast-growing quick commerce sector. The company competes with the likes of Zomato-owned Blinkit, Swiggy Instamart, Flipkart Minutes, and Tata’s BigBasket.
In fiscal year 2023, Zepto recorded a revenue of Rs 2,024 crore, marking a 1,335 percent year-on-year increase from Rs 141 crore in FY22. The company plans to use the fresh capital to expand its delivery networks, enhance its technology infrastructure, and deepen its market penetration across various Indian cities. Zepto’s rapid growth and successful fundraising rounds highlight the increasing investor confidence in the quick commerce sector, which has seen a surge in demand, particularly in urban areas where consumers prioritize convenience and speed.
The company is also planning to relocate its headquarters from Mumbai to Bengaluru by November, a move driven by the need for tech talent and the benefits of being located in India’s tech hub. As Zepto continues to scale its operations and prepare for a planned public market debut in the next 12-18 months, the company’s success story is set to inspire other startups in the fast-growing quick commerce space.
- BusinessToday.”Quick commerce unicorn Zepto raises $340 million in follow-on round, valuation jumps to $5 billion”.
- Reuters.”India’s Zepto raises $340 mln at $5 bln valuation”.
- MoneyControl.”Zepto raises $1 billion in two months; closes $340 million funding round led by General Catalyst”.