Mumbai, Aug 14 (IANS): Quick commerce company Zepto is set to raise $340 million in the new round of funding, a report said on Wednesday.

“The company has secured interest from Mars Growth and General Catalyst at a valuation of $5 billion which is a 40 per cent hike from the past funding round valuation of $3.6 billion,” the report said.

Adit Palicha-led 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.

According to a media report, Palicha said: "Zepto plans to expand its business in 10 new cities including Ahmedabad, Jaipur, and Chandigarh this year. company will continue its focus on the existing markets, where the company is making money. The company aims to take its sales to Rs 10,000 crore."

Palicha further said that we plan to increase the number of stores from 350 to 700 while maintaining financial discipline. The company will also reinvest the money coming from profitable stores in its business.

Earlier Palicha wrote on X, "Reflecting on the past three years of building Zepto: the story of two kids dropping out of college and starting a company that is worth 30,000 crore in just three years is only possible in one country in 2024: India."

He further said they are ready to dedicate themselves to building Zepto into a world-class $50B Indian company that employs lakhs - as a way to give back to the country that has given us so much.

Zepto was founded in July 2021. The company plans to launch an IPO in the next two to three years. The trend of quick commerce is increasing rapidly in India. Zepto competes directly with major players like Zomato's Blinkit and Swiggy's Instamart.