Zepto is a quick commerce startup that offers an instant grocery delivery platform for online grocery  shopping. The startup announced an additional funding round of $250 million which will mark Zepto’s  valuation to be around $4.6 billion. The round might reach 400 million USD in size with participation  from the firm’s existing investors including General Catalyst. Moneycontrol reports. The startup may  have investments from private equity and sovereign funds including Abu Dhabi Investment Authority,  KKR, and Singapore’s GIC. 

The startup used a strategic move to achieve profitability by reducing the time for its stores. This  additional round caught the interest of investors after the company secured $665 million from its new  and existing investors at a valuation of 3.4 billion USD. The valuation of this startup increased by 3.3  times in almost 11 months. The CEO and co-founder of Zepto, Aadit Palicha told Moneycontrol about  the company’s GMV increasing to over $1 billion in 2.5 years with an improved bottom line allowing  the startup to secure funds easily. These fresh proceeds will be used to scale up, advance its  technologies, and use cutting-edge technologies to compete in the quick commerce sector. 

General Catalyst will have its first major investment in the firm since the US-based Venture Capital  company announced the merging of the company with homegrown fund venture highway. Last month,  General Catalysts announced its plan to invest $500 million to $1 billion in India and it already invested  in Cred Spinny, Orange Health, and more since then.  

The reports mentioned General Catalysts and other investors might join the new funding round. After  this additional round Zepto will secure $1 billion in a small-time surpassing Flipkart’s $950 million  funding round in May. The company intends to use this investment to scale up and increase its physical  stores and online brand presence. The company also aims to move its base to a public listing in India  by the end of 2026. This quick commerce startup competes with other companies including BigBasket,  Swiggy, Instamart, and Blinkit. 

Conclusion: 

Zepto is an instant grocery Delivery Startup that announced an additional funding round of $250  million making its valuation cross the $4.6 billion mark. The company plans to use this investment to  scale up and increase its physical stores and online brand presence. The company also aims to move  its base to a public listing in India. This additional round came just after the company secured $665  million from its new and existing investors at a valuation of 3.4 billion USD. The valuation of this startup  increased by 3.3 times in almost 11 months. The company’s GMV increased to more than $1 billion in  2.5 years with an improved bottom line allowing the startup to secure funds easily. Last month, General  Catalysts announced its plan to invest $500 million to $1 billion in India and it already invested in Cred  Spinny, Orange Health, and more since then. This VC firm and other investors might join the new  funding round.