Zepto is preparing to raise an additional $310 million, bringing its valuation to $5 billion. This represents a 40% increase from its previous valuation, set just over a month ago. With this new funding, Zepto will have secured nearly $1 billion in total over two recent rounds. The company had earlier raised $665 million in late June, significantly boosting its valuation from $1.4 billion to $3.6 billion in just under a year. This rapid increase reflects the strong demand for quick commerce services.
Mars Growth Capital, alongside General Catalyst and other existing investors, will be participating in the new funding round. Mars Growth, which is associated with Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, is expected to invest around $50 million, while General Catalyst will contribute approximately $200 million. The round may total up to $350 million, depending on contributions from other investors and wealthy individuals. Zepto is restricted from raising more than $350 million within 90 days of the previous round to prevent dilution of existing investors’ stakes.
The term sheet for this funding was signed recently, and the round is anticipated to close within a few weeks. Notably, Neeraj Arora from General Catalyst will join Zepto’s board as part of this deal. Arora, formerly the Chief Business Officer at WhatsApp, joined General Catalyst after the acquisition of early-stage fund Venture Highway.
Zepto, founded by Aadit Palicha and Kaivalya Vohra, both Stanford dropouts, will have raised a total of $1.5 billion once this round is completed. The company, currently based in Singapore, plans to relocate to India and is preparing for an initial public offering. Recent investors include DST Global, Avenir Growth Capital, Lightspeed Venture Partners, and Avra.
The new funding will help Zepto compete more effectively against rivals like Blinkit, Swiggy Instamart, and Flipkart Minutes. Blinkit, valued at $12-13 billion, plans to expand to 2,000 dark stores by 2026. Zepto aims to set up 700 dark stores by March 2025 and is expanding its store size to 4,000 square feet, while also increasing its product range from 3,000 to 10,000 SKUs.
