[Funding News] Zepto Secures $340 Mn Funding at $5 Bn valuation

Zepto, a company that specializes in quick commerce, has secured $340 million in a follow-on financing round that was led by General Catalyst. Dragon Fund and Epiq Capital have also participated as new investors.

Additionally, existing investors, such as Contrary, DST, Lightspeed, and StepStone, increased their investments.

Zepto's valuation has increased by nearly 40% to $5 billion as a result of this new funding, from $3.6 billion in June, when it raised $665 million in its Series F round. The company has raised over $1 billion in 2024, $1.2 billion in the past year, and over $1.5 billion since its inception.

Zepto intends to double its number of dark stores to 700 by March 2025 and to enter new markets, including Ahmedabad, Chandigarh, Vizag, and Nasik. The company will also expand its presence in current metropolitan areas.

Read also - Pilgrim Secures $9 Mn Series B Funding Round Led by Fireside and Vertex Ventures

Zepto delivers over 10,000 products across a variety of categories within 10 minutes to millions of customers through a nationwide network of delivery centers.

With an annualized gross merchandise value of over $1 billion (Rs 8,300 crore) and 140% year-on-year growth, the Mumbai-based company claims to have nearly attained EBITDA positivity. In addition, it reports that approximately 75% of its stores are fully EBITDA positive as of May 2024.

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Aadit Palicha, co-founder and CEO of Zepto, said: “First, the opportunity to bring on a lead investor of Neeraj Arora’s caliber from General Catalyst was one we couldn’t pass up. Second, strengthening our balance sheet is a strategic move, especially as the company continues to deliver robust growth and operating leverage.”

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