Zepto, the Indian online grocery startup, has experienced a significant boost in valuation, reaching approximately $5 billion after securing $340 million in its latest funding round. The investment was led by General Catalyst Partners, underscoring the continued global interest in India’s rapidly expanding e-commerce sector.
The funding round also saw contributions from new investors, Dragon Fund and Epiq Capital, alongside existing backers such as Lightspeed Venture Partners and DST Global, who increased their investments. This new influx of capital follows a previous $665 million round in June, where private equity firm Avenir and Lightspeed joined as new investors, elevating Zepto’s valuation to $3.6 billion at that time.
The surge in investment comes despite recent challenges within India’s e-commerce landscape, including regulatory issues faced by Paytm and insolvency proceedings at edtech firm Byju’s, which have led some investors to be more cautious. However, the ongoing enthusiasm for India’s digital market is evident. In May, Google, a subsidiary of Alphabet Inc., demonstrated its confidence by investing $350 million in Flipkart, another major player in India’s e-commerce sector.
Zepto, headquartered in Mumbai, is capitalizing on the growing trend of online shopping among Indian consumers. The company plans to double its warehouse capacity to over 700 by March 2025, using revenue from its existing dark stores to fund this expansion. Additionally, Zepto is reportedly preparing for an initial public offering (IPO) as it continues to scale its operations and solidify its position in the market.
