Quick commerce leader Zepto raises $340 million in follow-on investment, valuing it at $5 billion. This investment follows Zepto’s $665 million June funding, which valued the company at $3.6 billion.
General Catalyst led the newest round, with Dragon Fund and Epiq Capital partnering. Zepto’s development and prospects were backed by StepStone, Lightspeed, DST, and Contrary, who invested more.
Aadit Palicha, Zepto’s Co-founder and CEO, highlighted the strategic thinking behind this additional funding: “The chance to bring on a lead investor of Neeraj Arora’s calibre from General Catalyst was an opportunity we couldn’t miss. Additionally, reinforcing our balance sheet is a strategic move as the company continues to show strong growth and operating leverage.”
Even though Zepto’s performance to date has garnered great trust from investors, Palicha notes that there is still much work to be done before India can become a world-class online company.
Neeraj Arora, Managing Director of General Catalyst, shared his enthusiasm for Zepto’s future: “Aadit and Kaivalya are exceptional founders who have turned their bold vision for India’s grocery sector into a category-defining company. This is just the beginning, and we’re thrilled to partner with them as they set new benchmarks for the future of e-commerce in India and beyond.”
Though no formal announcement has been made yet, Zepto plans to strategically move its headquarters from Mumbai to Bengaluru by November. According to sources, the relocation is motivated by the advantages of being situated in India’s development cluster as well as the demand for tech skills.
About Zepto
Zepto is India’s fastest-growing e-grocery company, valued at $1.4 billion, after its recent $200 million Series-E fundraise from prestigious global investors like StepStone Group, Goodwater Capital, Y Combinator Continuity, Kaiser Permanente, Nexus Venture Partners, Glade Brook Capital, and Lachy Groom. The company was founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra.
