Zepto: Fresh Funding Round of $340M comes to an end and receives interest for $250 Investment

Zepto, a quick commerce startup, is closing a fresh funding round of $340 million led by General Catalyst, valuing the company at $5 billion.

This new round comes just weeks after Zepto received interest for a $250 million investment from General Catalyst. The rapid delivery startup has decided to cap the round’s size at $340 million, with $250 million coming from General Catalyst and $50 million from Mars Growth. Zepto’s new funding round brings its total funding to over $1.6 billion, with $1 billion raised in the past 50-60 days. The company’s valuation has skyrocketed from $1.4 billion in August 2023 to $5 billion in August 2024. Investors are pouring money into the fast-growing commerce space. Zepto stands out for its execution chops and ability to compete against established rivals.

The funding round consists of primary capital and will be all equity. Zepto is raising money while it can, as the market can turn quickly. The company is building a cash chest to compete against large players like Zomato, Swiggy, Walmart, Reliance, and the Tatas. Quick commerce has become an indispensable sector, with companies like Zepto proliferating. Zepto’s founder, Aadit Palicha, has drawn parallels with Amazon’s early days, stating that the company is sitting on the right macro and business model to create something significant. Palicha believes that if Zepto executes well, it can achieve a $50-80 billion outcome. However, he notes that execution is critical and not guaranteed.