Quick commerce firm, Zepto, is reportedly planning to raise funds worth $310 million, media reports said. This funding round will push the valuation of the Mumbai-based company to $5 billion. This will make the firm’s valuation climb by 40 per cent from its last funding round a month earlier.
According to a report by The Economic Times, with this round, Zepto will raise approximately $1 billion in funding from the last two rounds. The forthcoming financing round is projected to see participation from major investors such as Mars Growth Capital and General Catalyst, among others.
While Mars Growth is expected to pour in $50 million in the company, General Catalyst could be looking at a contribution of $200 million, the report noted. Notably, Mars Growth is co-managed by Liquidity Group and Mitsubishi UFJ Financial Group Inc. Other participants in the round would be existing investors and some high-net-worth individuals and the overall size of the financing round could reach $350 million.
The funding reportedly includes a restriction that bars the quick commerce firm from raising more than $350 million in another financing round within 90 days of the previous one. This measure has been put in place to safeguard the existing investors and prevent any dilution in their stake in the firm.
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Zepto is reportedly looking to shift to India from Singapore as the firm looks into launching an initial public offering (IPO). In June 2024, the company raised $665 million from investors and saw its valuation double from $1.4 billion in August 2023 to $3.6 billion. The last funding round saw participation from investors like Avra, Lightspeed Venture Partners, DST Global, etc.
Notably, Mars Growth has earlier invested in Indian companies such as Eruditus and Zetwerk. General Catalyst is a known investor in Cred. Under the deal, Neeraj Arora, partner, General Catalyst, will be a part of the board at Zepto.