Total valuation soared to $5billion
Quick commerce startup Zepto has secured $340 million in a fresh funding round, propelling its valuation to an impressive $5 billion. This comes just weeks after the company raised $665 million in June, pushing its total funding over the past two months to more than $1 billion.
The latest investment round is led by General Catalyst, contributing $200 million, and Mars Growth Capital, adding $50 million. Contributions from existing investors and affluent individuals could potentially increase the round’s total to $350 million.
Founded by 23-year-old Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto has experienced a meteoric rise in valuation—from $1.4 billion in August 2023 to $5 billion in just one year. The company initially aimed to raise up to $400 million but settled at $340 million.
Zepto’s rapid growth has positioned it as a standout in India’s competitive quick commerce sector, where it competes with established players like Blinkit, Swiggy Instamart, and the soon-to-launch Flipkart Minutes. The startup’s success is driven by soaring demand for fast deliveries of goods ranging from groceries to electronics.
The new capital will be used to bolster Zepto’s balance sheet and prepare for an aggressive push against its competitors. The company is also eyeing an initial public offering (IPO) soon, with this funding round serving as a strategic step towards that goal.
