Zepto, a key participant in the quick commerce industry, has secured $340 million in a follow-on fundraising round, bringing its worth to $5 billion. This investment comes just after Zepto secured $665 million in June, valuing the business at $3.6 billion.
General Catalyst led the current round, which included new investors Dragon Fund and Epiq Capital. Existing sponsors, including StepStone, Lightspeed, DST, and Contrary, raised their investments, reflecting their great belief in Zepto's development and potential.
Aadit Palicha, Zepto's Co-founder and CEO, explained the strategic logic behind the extra funding: "The opportunity to bring on a lead investor of Neeraj Arora's level from General Catalyst was one we couldn't pass up. Furthermore, strengthening our financial sheet is a strategic decision as the firm continues to experience excellent growth and operating leverage."
While successive fundraising rounds demonstrate strong trust in Zepto's achievements thus far, Palicha understands that considerable work remains to realize the aim of developing a world-class internet firm in India.
Neeraj Arora, Managing Director of General Catalyst, expressed his optimism about Zepto's future:"Aadit and Kaivalya are excellent founders who have transformed a visionary concept for India's grocery market into a category-defining business. This is only the beginning, and we are excited to collaborate with them as they establish new standards for the future of e-commerce in India and beyond."
In a strategic decision, Zepto plans to relocate its headquarters from Mumbai to Bengaluru by November, albeit no formal announcement has been made. According to sources, the decision is motivated by a need for IT skills as well as the advantages of being placed in India's technology hub.
