[Funding News] Zepto Set to Raise $310 Mn Funding Round

Zepto plans to secure an additional $310 million in funding, which will result in a valuation of $5 billion for the quick-commerce company.

This is a 40% increase from its previous funding round, which concluded slightly over a month ago.

This will bring the cumulative money received to around $1 billion in two consecutive funding rounds for the three-year-old company. In late June, the company managed to secure $665 million in funding from a group of investors, resulting in a significant increase in its valuation from $1.4 billion in August of the previous year to $3.6 billion. Over the course of a year, Zepto's valuation has increased by more than three-and-a-half times, mostly due to the significant increase in demand for fast commerce.

Mars Growth Capital, a venture capital firm jointly operated by Mitsubishi UFJ Financial Group Inc and Israel's Liquidity Group, is expected to join the next funding round of a Mumbai-based company. The firm, along with US-based General Catalyst and other current investors, has signed a term sheet for this investment opportunity, according to sources familiar with the matter.

Read also - Wealthtech firm Neo Secures $48 Mn Led by MUFG, Euclidean Capital

In addition to the current investors, affluent individuals may also contribute funds in this round, potentially increasing the total amount raised to $350 million. As per those who have been informed about the conditions, Zepto is restricted from raising more than $350 million in a new funding round within 90 days of the prior round, even if the company's value is higher. This restriction is in place to safeguard the current investors from a decrease in their ownership percentage.

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