Quick Commerce Platform Zepto Raises USD 340 Mn in Follow-On Round, Boosting Valuation to USD 5 Bn Zepto plans to use the new capital to double its dark stores to 700 by March 2025 and expand into new markets such as Nasik, Chandigarh, Vizag, and Ahmedabad.
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Quick commerce company Zepto has announced the raising of USD 340 million in a follow-on financing round, propelling its valuation to USD 5 billion, up from USD 3.6 billion in June 2024.
The round 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 stakes, reinforcing their confidence in Zepto's rapid growth trajectory.
With this latest funding, Zepto has raised over USD 1 billion in 2024 alone and more than USD 1.5 billion since its inception.
Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto serves millions of customers by delivering over 10,000 products across various categories within 10 minutes through a network of delivery hubs nationwide.
Zepto plans to use the new capital to double its dark stores to 700 by March 2025 and expand into new markets such as Nasik, Chandigarh, Vizag, and Ahmedabad. The company also aims to strengthen its presence in existing metro cities.
"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."
Neeraj Arora, Managing Director of General Catalyst, expressed his belief in Zepto's potential, saying, "Zepto's quick commerce model is setting the standard for the future of e-commerce in India and beyond."
