Zepto, an online grocery delivery startup, is in talks to raise another $310 million. This funding round could elevate the company’s valuation to a remarkable $5 billion. The news comes from an Economic Times report, which suggests that Zepto, led by Aadit Palicha, is in continuous fundraising mode to fuel its rapid expansion.
Zepto Possible Investors
According to the report, the funding round may see participation from Mars Growth Capital—co-managed by Mitsubishi UFJ Financial Group Inc. and Israel’s Liquidity Group—as well as US-based General Catalyst and other existing investors. Interestingly, this comes just two months after Zepto raised $665 million, which doubled its valuation to $3.6 billion.
Funding Reach $350 Million
The new funding round might even grow to $350 million, with involvement from existing investors and high-net-worth individuals (HNIs). However, due to terms from the previous funding round, Zepto is limited to raising no more than $350 million within 90 days to protect current investors from dilution. If this round is successful, it would bring Zepto’s total funds raised to around $1.5 billion.
Background and Market Position
Founded in 2021 by Stanford dropouts Kaivalya Vohra and Aadit Palicha, Zepto operates in India’s competitive quick commerce online market. The startup promises to deliver groceries, household items, and electronic accessories to urban consumers within minutes. Zepto uses a network of “dark stores,” which are small warehouses located close to high-demand areas, to ensure fast delivery times.
Growth with Expansion Plans
Currently, Zepto has about 350 dark stores across 10 cities, including major hubs like Bengaluru, Chennai, Delhi, and Mumbai. The company plans to expand its dark store network to 700 by March 2025, further solidifying its presence in the quick commerce space. Zepto has also grown its delivery partner network to over 50,000, adding around 5,000 new partners every month.
Zepto’s rapid growth and ambitious plans are supported by its ongoing fundraising efforts. As it aims for a $5 billion valuation, the company is well-positioned to continue leading the quick commerce market in India.
