Zepto, a leading player in the quick commerce sector, has raised $340 million in a follow-on funding round, boosting its valuation to $5 billion. This investment follows closely on the heels of the $665 million the company raised in June, which had valued Zepto at $3.6 billion.
The latest round was led by General Catalyst, with new investors Dragon Fund and Epiq Capital joining in. Existing supporters such as StepStone, Lightspeed, DST, and Contrary also increased their investments, demonstrating strong confidence in Zepto's growth and potential.
Aadit Palicha, Zepto's Co-founder and CEO, highlighted the strategic thinking behind this additional funding: "The chance to bring on a lead investor of Neeraj Arora’s calibre from General Catalyst was an opportunity we couldn't miss. Additionally, reinforcing our balance sheet is a strategic move as the company continues to show strong growth and operating leverage."
While the recent funding rounds reflect significant confidence in Zepto's performance so far, Palicha acknowledges that much work remains to achieve the goal of building a world-class internet company out of India.
Neeraj Arora, Managing Director of General Catalyst, shared his enthusiasm for Zepto's future: "Aadit and Kaivalya are exceptional founders who have turned their bold vision for India's grocery sector into a category-defining company. This is just the beginning, and we're thrilled to partner with them as they set new benchmarks for the future of e-commerce in India and beyond."
In a strategic shift, Zepto is also planning to relocate its headquarters from Mumbai to Bengaluru by November, though no official announcement has been made yet. Sources suggest that the move is driven by the need for tech talent and the benefits of being located in India’s tech hub.