Zepto secures USD 340 million in latest funding round, boosting valuation to USD 5 billion
Aug 30, 2024, 10:21 IST
Zepto, a popular quick-commerce platform which rivals Blinkit and Swiggy Instamart, has secured USD 340 million in a follow-on financing round led by General Catalyst, pushing the Mumbai-based startup's valuation to $5 billion. This fresh infusion of capital comes shortly after Zepto raised $665 million in June 2024, which had then valued the company at $3.6 billion—almost triple its worth from the previous year.
The latest round was spearheaded by General Catalyst, with new investors Dragon Fund and Epiq Capital also joining the fray. Existing backers, including StepStone, Lightspeed, DST, and Contrary, have further increased their investments in Zepto.
Aadit Palicha, Co-founder and CEO of Zepto, explained that the decision to pursue this follow-on financing was driven by two key factors. "First, we couldn’t miss the opportunity to bring Neeraj Arora from General Catalyst on board as our lead investor. Second, strengthening our balance sheet is a strategic move as we continue to show strong growth and operational efficiency," Palicha said according to PTI.
Zepto is rapidly expanding its network of dark stores, which currently stands at 370, according to a report in The Hindu. The company plans to increase this to approximately 700 stores by March 2025, thereby strengthening its presence across the top 20 cities in India. In June, Zepto reported crossing the $1 billion mark in annualized Gross Merchandise Value (GMV).
Founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto has rapidly grown into a leading player in the quick commerce sector, drawing significant attention from investors and industry watchers alike.
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The latest round was spearheaded by General Catalyst, with new investors Dragon Fund and Epiq Capital also joining the fray. Existing backers, including StepStone, Lightspeed, DST, and Contrary, have further increased their investments in Zepto.
Aadit Palicha, Co-founder and CEO of Zepto, explained that the decision to pursue this follow-on financing was driven by two key factors. "First, we couldn’t miss the opportunity to bring Neeraj Arora from General Catalyst on board as our lead investor. Second, strengthening our balance sheet is a strategic move as we continue to show strong growth and operational efficiency," Palicha said according to PTI.
Zepto is rapidly expanding its network of dark stores, which currently stands at 370, according to a report in The Hindu. The company plans to increase this to approximately 700 stores by March 2025, thereby strengthening its presence across the top 20 cities in India. In June, Zepto reported crossing the $1 billion mark in annualized Gross Merchandise Value (GMV).
Founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto has rapidly grown into a leading player in the quick commerce sector, drawing significant attention from investors and industry watchers alike.
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