Zepto Secures $340 Million in Latest Funding Round, Boosting Valuation to $5 Billion

The latest funding round was spearheaded by General Catalyst, with new investors Dragon Fund and Epiq Capital joining in. Zepto, the quick commerce unicorn, has secured $340 million (over Rs 2,850 crore) in this follow-on financing round, elevating the Mumbai-based company's valuation to $5 billion, confirms a company official.

This fundraising comes shortly after the three-year-old startup raised $665 million (around Rs 5,560 crore) in June 2024, which had valued the company at $3.6 billion—nearly three times its valuation from the previous year.

Zepto co-founder Aadit Palicha said the rationale behind this follow-on financing was two-fold.

“First, the opportunity to bring on board a lead investor of Neeraj Arora’s calibre from General Catalyst was one we couldn’t pass on. Second, strengthening our balance sheet is a strategic move, particularly as the company continues to deliver robust growth and operating leverage,” he said.

The funding round also attracted participation from new investors Dragon Fund and Epiq Capital, while existing investors StepStone, Lightspeed, DST, and Contrary increased their stakes, according to a company statement.

Zepto was founded in 2021 by Stanford University dropouts Aadit Palicha and Kaivalya Vohra.