Zepto Valuation Sees 40% Bump Up In Two Months
The quick-commerce giant is now valued at $5 billion. The Mumbai-based startup aims to double its dark store count before a potential initial public offering.
Zepto, a quick-commerce giant, has raised another $340 million in a follow-on financing round at a $5 billion valuation, following its previous fundraise in June, raking in over $1 billion in capital in the past two months.
The funding was led by General Catalyst, with Dragon Fund and Epiq Capital joining as new investors. Existing investors such as StepStone, Lightspeed, DST, and Contrary also increased their stakes, according to a statement.
“The rationale behind this follow-on financing was twofold,” said Aadit Palicha, co-founder and chief executive officer at Zepto.
“First, the opportunity to bring onboard a lead investor of Neeraj Arora’s calibre from General Catalyst was one we couldn't pass on. Second, strengthening our balance sheet is a strategic move, particularly as the company continues to deliver robust growth and operating leverage," Palicha said.
In June, the Aadit Palicha-led company closed a massive $665 million, or about Rs 5,560-crore round, as the Mumbai-based startup aimed to double its dark store count ahead of a potential initial public offering.
Speaking to NDTV Profit in June, Palicha had said Zepto will mostly enter 10 new cities this year, with Ahmedabad, Jaipur, and Chandigarh on the horizon. The company is also going to continue doubling down in its existing markets, where it has already proven high degrees of profitability, continuing to grow the business to over Rs 10,000 crore in sales.
"We plan to continue operating with fiscal discipline as we scale from 350 stores to 700 stores by reinvesting the capital generated from mature stores back into the business," Palicha had said.
