Zepto raising funds again, in talks for another round of $310 million, at $5 billion valuation

Quick-commerce grocery delivery platform Zepto is set to raise an additional $310 million, pushing its valuation to $5 billion, a 40 per cent increase from its last funding round just over a month ago, according to a report by The Economic Times.

This new round of financing will bring Zepto’s total fundraising to nearly $1 billion in two successive rounds for the three-year-old company. In June, Zepto raised $665 Mn from a group of investors, more than doubling its valuation to $3.6 Bn from $1.4 Bn in August last year.

Mars Growth Capital, corun by Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, is set to participate in the next round, joining US-based General Catalyst and other existing investors, with a term sheet already signed, added the report.

Mars Growth has invested in Indian unicorns such as B2B manufacturing company Zetwerk and edtech firm Eruditus.

“The term sheet was signed Friday and it should close in a couple of weeks. Mars Growth is investing about $50 Mn while General Catalyst is investing around $200 Mn and the rest from others,” sources were quoted as saying by ET.

In the past year, Zepto’s valuation has increased more than three-and-a-half times, driven by the rapid growth in demand for quick commerce.