Mumbai, Aug 30 : Quick e-commerce platform Zepto on Friday said it has secured $340 million in a follow-on financing round, taking the company's valuation to $5 billion after its previous fundraise in June.

General Catalyst led the round, with Dragon Fund, and Epiq Capital joining as new investors. Existing investors such as StepStone, Lightspeed, DST, and Contrary also increased their stakes, the company said in a statement.

Aadit Palicha, Co-founder and CEO at Zepto, said the rationale behind the follow-on financing was twofold.

'First, the opportunity to bring onboard 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 mentioned.

Founded in 2021 by Stanford University dropouts Palicha and Kaivalya Vohra, Zepto became one of India's fastest-growing consumer internet companies.

Headquartered in Mumbai, Zepto delivers over 10,000 products, ranging across categories in 10 minutes through a network of delivery hubs across the country.

Arora, Managing Director of General Catalyst, said that this is one of their first investments in India, following the merger of Venture Highway and General Catalyst.

"We are thrilled to partner with Zepto, and believe their quick commerce model is setting the standard for the future of e-commerce in India and beyond,' he said.

Zepto had raised funding of $665 million or Rs 5,560 crore in June at a valuation of $3.6 billion. The company aims to double the number of its dark stores before the IPO.

The company plans to increase the number of stores from 350 to 700 while maintaining financial discipline. The company plans to launch an IPO in the next two to three years.

/IANS