Zepto raises $340 mn in Series G funding, valuation shoots to $5 bn
Zepto was founded by Aadit Palicha and Kaivalya Vohra. (File Photo)
In a Series G funding round, quick commerce start-up Zepto has raised $340 million from a clutch of investors. With this, the company’s valuation has shot up to $5 billion, according to an Outlook Business report.
Series G round is typically used for companies that are on to their next stage of growth, gearing up for an IPO or acquisition, or expansion into a new market.
Of the $340 million that Zepto received, $250 million came from General Catalyst, $50 million from Mars Growth, and the remaining amount was fetched from existing investors.
Initially, Zepto wanted to raise $400 million in funding but later, it decided to keep its funding round at $340 million, according to a MoneyControl report. The funding entirely consists of primary capital and will all be in equity.
“We are where Amazon was in the late 90s, early 2000s. We are sitting on the right macro and the right business model to create something huge. And if we execute well, we are sitting on a $50-80 billion outcome,” said Aadit Palicha, Zepto co-founder, as reported by MoneyControl.
The funding comes at a time when quick commerce apps – which deliver a wide range of products from vegetables to electronics – have seen a surge in demand in the country. With the latest funding round, Zepto has managed to rake in $1 billion in just the past 50-60 days. This has skyrocketed its valuation from $1.6 billion in August 2023 to $5 billion in August 2024.
Zepto to have 700 dark stores by 2025
Zepto plans to expand its network of dark stores to over 700 by March 2025. A dark store is a large facility, resembling a conventional supermarket but is not open to the public. Such stores house the goods used to fulfil orders placed online.
The company reported a 140 per cent revenue increase from the previous year in June, and currently collaborates with more than 50,000 delivery partners, adding over 5,000 agents each month.
Zepto was founded by Aadit Palicha and Kaivalya Vohra. The company is performing well in an environment where it faces heavy competition from rivals such as Blinkit, Swiggy-Instamart, and others.
Quick commerce market witnessing growth in India
According to a report by Datum Intelligence, India’s quick commerce market is expected to grow about 35 per cent to nearly $7 billion in gross merchandise value. Its valuation now stands at $5 billion.
Both General Catalyst and Mars Growth will be looking to take their chances to hit the jackpot in the Indian start-up ecosystem, which is the third largest in the world. Mars Growth has already invested in companies like Zetwerk and Meesho in India.
First Published: Aug 14 2024 | 5:39 PM IST