Zepto, a Mumbai-based quick commerce company, raised $360 million in a follow-on financing round, boosting its valuation to $5 billion, a 39% increase from its previous fundraise barely three months ago.
Zepto Raises $360 Million, which valued the company at $3.6 billion.
The funding round was led by U.S. venture capital firm, General Catalyst with Dragon Fund, and San Francisco-based Epiq Capital joining as new investors. Existing investors such as StepStone, Lightspeed, DST, and Contrary also increased their stakes, Zepto said in a statement late Thursday.
This is one of our first investments in India following the merger of Venture Highway and General Catalyst,” Neeraj Arora, managing director of General Catalyst, said in the statement. “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.
Zepto raised $665 million in its most recent funding round in June with investments from Avenir, Lightspeed, and Avra. The round, which valued the company at $3.6 billion, also included participation from existing investors such as Glade Brook Capital Partners and Nexus.
Strengthening our balance sheet is a strategic move, particularly as the company continues to deliver robust growth and operating leverage,” Aadit Palicha, Co-founder and CEO at Zepto said in the statement.
Zepto was founded in 2021 by the 19-year olds Aadit Palicha and Kaivalya Vohra, who gave up places at an undergrad program in computer science at Stanford University to start a grocery delivery service. Zepto’s extensive network of local fulfilment hubs enables the delivery of the company’s diverse catalog of over 10,000 products to customers in just 10 minutes.
