Zepto Raises $340 Million in Follow-On Financing Round

Zepto, a quick commerce startup based in Mumbai, has secured $340 million in a follow-on financing round led by General Catalyst. The move boosts the company's valuation to $5 billion. Co-founder Aadit Palicha highlighted the significance of the new lead investor, Neeraj Arora, and the aim to strengthen the balance sheet.

Zepto, the rapidly growing quick commerce unicorn from Mumbai, has secured $340 million in a follow-on financing round spearheaded by General Catalyst. The fresh infusion catapulted the three-year-old startup's valuation to an impressive $5 billion.

The latest fundraising follows a $665 million round in June 2024, which had valued Zepto at $3.6 billion. This nearly triples its worth compared to the previous year.

Co-founder and CEO Aadit Palicha disclosed that the rationale behind this follow-on financing was to bring on board a lead investor of Neeraj Arora's calibre from General Catalyst and to strengthen the company's balance sheet amid continuous robust growth and operating leverage. The funding also saw participation from Dragon Fund and Epiq Capital, along with increased stakes from existing investors StepStone, Lightspeed, DST, and Contrary.

(With inputs from agencies.)