Zepto Set to Raise $310 Million in Latest Funding Round, Valuation to Surge to $5 Billion
- ByStartupStory | August 12, 2024
Quick commerce major Zepto is reportedly gearing up for a significant funding boost, aiming to raise an additional $310 million. This new round of funding is set to elevate Zepto’s valuation to $5 billion, marking a 40% increase from its previous fundraise just over a month ago. According to an ET report, this latest round will bring Zepto’s total funds raised to nearly $1 billion across two successive rounds.
In June, Zepto successfully secured $665 million from a group of investors, more than doubling its valuation from $1.4 billion in August last year to $3.6 billion.
Mars Growth Capital, a partnership between Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, is expected to participate in this round alongside US-based General Catalyst and other existing investors. The term sheet for the investment has already been signed.
“Mars Growth is investing about $50 million while General Catalyst is investing around $200 million and the rest from others,” sources told ET. Mars Growth has previously invested in Indian unicorns such as B2B manufacturing company Zetwerk and edtech firm Eruditus.
The report also mentioned that existing investors and some wealthy individuals might contribute to this round, potentially increasing the total size to $350 million. Zepto is restricted from raising more than $350 million within 90 days of the previous round to protect existing investors from stake dilution.
Additionally, Neeraj Arora of General Catalyst will join Zepto’s board as part of this funding round. The Information first reported the development of Zepto’s additional fundraise at a $5 billion valuation on June 25.
Since its founding in 2021 by Palicha and Vohora, Zepto has experienced rapid growth, driven by increasing demand for quick 10-minute deliveries. Last year, Zepto became the first unicorn of 2023 after raising $200 million in its Series E funding round.
Zepto is now considering shifting its base to India and is eyeing a public listing in 2026. While Zepto has yet to file its financial statement for FY24, it reported a surge in operating revenue, which increased 14.3 times year-on-year to INR 2,024.3 crore in FY23. However, the company’s net loss stood at INR 1,272.4 crore for FY23.
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