Zepto set for another $310 million funding delivery, Mars Growth to join
Zepto is set to raise another $310 million that will value the quick-commerce firm at $5 billion after the funding, a 40% jump from its last round closed just over a month ago, people in the know said.
This will take the total funds raised to nearly $1 billion in two successive rounds for the three-year-old firm. It raised $665 million from a clutch of investors in late June, more than doubling its valuation to $3.6 billion from $1.4 billion in August last year. In a year, Zepto has seen a more than three-and-a-half-time spike in valuation, aided by the rapid rise in demand for quick commerce.
Mars Growth Capital, co-run by Mitsubishi UFJ Financial Group Inc and Israel’s Liquidity Group, is set to participate in the next round joining US-based General Catalyst and other existing investors of the Mumbai-based firm for which a term sheet has now been signed, people briefed on the matter said.
Existing investors and some wealthy individuals may also pumped in funds in this round, which may push the total size of the round to $350 million. According to people briefed on the terms, Zepto cannot raise more than $350 million in a new round within 90 days of the previous round even at a higher valuation under the terms of the funding, to protect existing investors against dilution of their stake.
“The term sheet was signed Friday and it should close in a couple of weeks. Mars Growth is investing about $50 million while General Catalyst is investing around $200 million and the rest from others,” one of the people said.
