Quick commerce startup Zepto is poised to secure $340 million in its latest funding round, bringing its valuation to $5 billion. This represents a substantial 40 percent increase from its previous valuation of $3.6 billion.

Zepto, led by Adit Palicha, had earlier raised $665 million in June, valuing the company at $3.6 billion. The upcoming funding round sees participation from prominent investors, including Mars Growth and General Catalyst. 

Palicha outlined ambitious plans for the company, stating that Zepto aims to double its number of dark stores before its initial public offering (IPO). The company intends to expand into 10 new cities this year, including Ahmedabad, Jaipur, and Chandigarh. It will also continue focusing on profitable existing markets, with a goal of increasing sales to Rs 10,000 crore.

Zepto plans to expand its store count from 350 to 700 while maintaining financial discipline. Profits from existing stores will be reinvested into the business. Reflecting on the company’s rapid growth, Palicha noted on X, “The story of two kids dropping out of college and building a company worth Rs 30,000 crore in just three years is only possible in India in 2024”.

Zepto, founded in July 2021, is set to launch its IPO within the next two to three years. As the trend of quick commerce gains momentum in India, Zepto competes directly with major players such as Blinkit, backed by Zomato, and Instamart, operated by Swiggy. The company’s growth underscores the expanding scope and potential of the quick commerce sector in the Indian market.