Quick commerce startup Zepto has raised USD 340 million in a follow-on financing round. This latest injection of capital elevates the company's valuation to USD 5 billion, following its previous round in June.
The funding was led by General Catalyst, with Dragon Fund and Epiq Capital joining as new investors. Existing backers including StepStone, Lightspeed, DST and Contrary also increased their investments.
“The rationale behind this follow-on financing was twofold,” said Aadit Palicha, Co-founder and CEO at Zepto. “First, the opportunity to bring onboard a lead investor of Neeraj Arora’s calibre from General Catalyst was one we couldn't pass on. Second, strengthening our balance sheet is a strategic move, particularly as the company continues to deliver robust growth and operating leverage. While these recent financings reflect strong confidence in Zepto’s performance to date, we recognise there is still a lot of execution ahead of us to fulfil our ambition of building a world-class internet company out of India. At Zepto, we genuinely feel we are just at the beginning of our journey.”
“This is one of our first investments in India following the merger of Venture Highway and General Catalyst. We are thrilled to partner with Zepto, and believe their quick commerce model is setting the standard for the future of e-commerce in India and beyond,” said Neeraj Arora, Managing Director of General Catalyst.
Dragon Fund’s representatives, Ridhi Chaudhary and Aakash Tulsani, also voiced their excitement about the investment, citing Zepto’s impressive execution and data-driven approach. They believe Zepto is well-positioned to capitalise on the growing demand for quick commerce in urban India.
Founded in 2021 by Palicha and Vohra, Zepto has swiftly established itself as a leader in India’s quick commerce sector. The company is headquartered in Mumbai and is known for its rapid delivery service, offering over 10,000 products within 10 minutes through its extensive network of delivery hubs across the country.