Zepto raises $340 million in follow-on financing spherical

Main quick-commerce platform, Zepto has raised $340 million in a follow-on financing spherical at a valuation of $5 billion which comes shut on the heels of its earlier fundraise in June. Basic Catalyst led this spherical, with Dragon Fund, and Epiq Capital coming onboard as new buyers. Current buyers comparable to StepStone, Lightspeed, DST, and Opposite additionally elevated their stakes.

In June, the corporate raised about $665 million at a valuation of $3.6 billion. It had stated that it’s seeking to go for an IPO in 9-12 months.

“The rationale behind this follow-on financing was two-fold. First, the chance to convey onboard a lead investor of Neeraj Arora’s calibre from Basic Catalyst was one we couldn’t go on. The second, strengthening our stability sheet is a strategic transfer, notably as the corporate continues to ship strong progress and working leverage,” stated Aadit Palicha, Co-founder and CEO, Zepto in an announcement.

“Whereas these latest financings mirror sturdy confidence in Zepto’s efficiency so far, we recognise there may be nonetheless loads of execution forward of us to fulfil our ambition of constructing a world-class web firm out of India,” he added.

Neeraj Arora, Managing Director of Basic Catalyst, “That is certainly one of our first investments in India following the merger of Enterprise Freeway and Basic Catalyst. We’re thrilled to associate with Zepto, and imagine their fast commerce mannequin is setting the usual for the way forward for e-commerce in India and past.”

370 darkish shops

Zepto, which at present has a community of 370 darkish shops, goals to develop the rely to about 700 by March 2025 strengthening its presence within the prime 20 cities. It had stated in June that it has crossed the milestone of $1 billion by way of annualised GMV.

“Dragon Fund’s imaginative and prescient is to again world-class know-how corporations globally. We’re very excited to associate with Zepto and its distinctive staff who’re defining and constructing fast commerce in India,” stated Ridhi Chaudhary, Chief Funding Officer, Dragon Fund.

“Fast commerce addresses the comfort, selection and worth wants of city India which is an enormous alternative,” stated Aakash Tulsani, Managing Director at Dragon Fund.

Market dimension

In keeping with a report launched by Redseer, quick-commerce market dimension is projected to develop to about $6 billion GMV (gross merchandise worth) by FY25 with anticipated progress charges of 75-85 per cent. This will probably be on the again of 5 million new Month-to-month Transacting Customers (MTU), it added.