Zepto, a quick commerce startup, has effectively raised $340 million in a new funding round, resulting in a valuation of the three-year-old company at $5 billion.
The startup’s rapid growth has garnered significant interest from investors who are keen to capitalize on the rapidly expanding quick commerce sector in India, as evidenced by this most recent development.
Zepto initially anticipated that the financing round would generate up to $400 million; however, it ultimately determined to restrict it to $340 million.
General Catalyst is investing $250 million of this sum, while Mars Growth is contributing approximately $50 million. Zepto’s current supporters will provide the remaining funds. The round will be wholly composed of primary capital, which is money that is directly invested in the company in exchange for equity.
Zepto’s aggregate funding has now exceeded $1.6 billion, with $1 billion raised in the last two months, following the incorporation of the most recent funds. The company’s valuation has increased from $1.4 billion in August 2023 to $5 billion in August 2024.
Read also – CricHeroes Raises Series B1 Funding Round from Venture Catalysts
Zepto’s most recent funding round has established the company in a strong position to compete against industry heavyweights such as Zomato, Swiggy, Walmart, Reliance, and the Tatas in the rapidly expanding quick commerce sector, which has grown to a $5 billion market in India.
In order to preserve its market share in e-commerce, Flipkart has also entered the market with its own offering, Flipkart Minutes, further intensifying the competitive landscape.
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