Quick commerce platform Zepto is planning to raise another $310 million in funding at a valuation of $5 billion. This is as per an Economic Times report. This valuation would be a 40 percent jump from the firm’s latest valuation.
This valuation would be a 40 percent jump from the firm’s latest valuation.
Quick commerce platform Zepto is planning to raise another $310 million in funding at a valuation of $5 billion. This is as per an Economic Times report. This valuation would be a 40 percent jump from the firm’s latest valuation.
On June 21, Zepto raised $665 million in a funding round. At that time, the start-up was valued at $3.6 billion. Avenir Growth Capital, Lightspeed Venture Partners, Avra Capital, and Andreessen Horowitz investor Anu Hariharan were some of the investors who participated in the funding round.
After the last fundraise, Zepto co-founder Aadit Palicha reportedly said, “We have executed fairly well and are the fastest-growing Indian company to hit a billion dollars in GMV (gross merchandise value) terms, and we continue to grow at over 100% year-on-year. If we did not execute, we would not have been able to successfully get this financing.”
Additionally, the company raised $200 million in August last year at a valuation of $1.4 billion. Investors, including StepStone Group, Goodwater Capital, Nexus Venture Partners, and GladeBrook Capital, participated in the funding round.
Speaking about the company's upcoming fundraise, a source told the Economic Times, “The term sheet was signed Friday, and it should close in a couple of weeks. Mars Growth is investing about $50 million, while General Catalyst is investing around $200 million and the rest from others.”
Mars Growth Capital, a venture co-managed by Mitsubishi UFJ Financial Group Inc. and Israel’s Liquidity Group, will reportedly join the new fundraise. US-based General Catalyst and other current investors will reportedly join the fundraise.
The quick commerce platform is also planning to shift its base from Mumbai to Bengaluru. This shift will help the company save around Rs 40–50 lakh in rent per month. Speaking about the move, an employee told Business Standard, “Half of the technology team was already in Bengaluru, while most of the product and marketing teams are in Mumbai. The company wants the product and technology teams to work together out of a single office space.”
The quick commerce industry has been increasing in India. Redseer Strategy Consultants predicts that the industry, which currently has a $2.8 billion market size, will grow to be a disruptive force that will completely change the retail sector.
Platforms such as Blinkit and Instagram are focusing on their expansion plans. Zomato-owned Blinkit is planning to have around 1,000 dark stores by FY25 end. Zepto is also planning to set up around 700 dark stores by March 2025. Amid the intensifying competition, new players such as Flipkart and Reliance are also joining the race.