Zepto In Talks For Another Funding Round Of $310 Mn At $5 Bn Valuation

Quick commerce major Zepto is reportedly looking to raise an additional funding of $310 Mn, which will value it at $5 Bn, marking a 40% increase from its previous fundraise just over a month ago.

As per an ET report, this latest round will bring the total funds raised by the firm to nearly $1 Bn across two successive rounds. In June, Zepto raised $665 Mn from a group of investors, more than doubling its valuation to $3.6 Bn from $1.4 Bn in August last year.

Mars Growth Capital, corun by Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, is set to participate in the next round, joining US-based General Catalyst and other existing investors, with a term sheet already signed, added the report.

Mars Growth has invested in Indian unicorns such as B2B manufacturing company Zetwerk and edtech firm Eruditus.

“The term sheet was signed Friday and it should close in a couple of weeks. Mars Growth is investing about $50 Mn while General Catalyst is investing around $200 Mn and the rest from others,” sources were quoted as saying by ET.

The report added that existing investors and some wealthy individuals may also contribute to this round, potentially increasing its size to $350 Mn. Zepto is restricted from raising more than $350 Mn within 90 days of the previous round to protect existing investors from stake dilution, it said.

Additionally, Neeraj Arora of General Catalyst will join the board of Zepto as part of this round.

In the past year, Zepto’s valuation has increased more than three-and-a-half times, driven by the rapid growth in demand for quick commerce.

The Information was the first to report the development of Zepto’s additional fundraise at $5 Bn valuation on June 25.

Founded in 2021 by Palicha and Vohora, Zepto has grown rapidly on the back of increasing demand for quick 10-minute deliveries. Last year, Zepto became the first unicorn of 2023 after raising $200 Mn in its Series E funding round.

It is pertinent to note that Zepto is looking to shift its base to India and is eyeing a public listing in 2026.

While Zepto is yet to file its financial statement for FY24, it saw its operating revenue surge 14.3X year-on-year to INR 2,024.3 Cr in FY23. Net loss stood at INR 1,272.4 Cr in FY23.