Quick commerce firm Zepto has raised $340 million in the latest round of funding that has valued the company at $5 billion.

With this funding round, the company has raised more than $1 billion in just two months.

The valuation of the company has jumped from $3.6 billion in the last round of funding of $665 million in July this year, according to data available with Tracxn.

The latest funding round was led by General Catalyst and also saw participation from new investors Dragon Fund and Epiq Capital. Existing investors StepStone, Lightspeed, DST and Contrary also increased their stakes, according to a company statement.

Founded in 2021, the Mumbai-based company, which breached the unicorn club in 2023, has raised over $1.9 billion from around 39 investors — both institutional and angel — in 10 funding rounds, Tracxn data showed.

Zepto co-founder and CEO 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.

Indian customers are increasingly preferring quick commerce services that look to deliver groceries and items of daily requirement and even electronics within a short time.

According to an Alliance Bernstein Report in January 2024, Indian quick commerce was primarily dominated by three players — Zomato’s Blinkit with a market share of around 40 per cent, followed by Swiggy’s Instamart at 37-39 per cent and Zepto at around 20 per cent from a GMV (gross merchandise value) perspective.

However, industry observers expect the competition to further heat up with e-commerce majors Amazon and Walmart-owned Flipkart also vying for a pie of the business.