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Quick grocery delivery platform Zepto is geared up to raise nearly $650 million from existing and new investors.

According to sources, the funding will take Blinkit closest rival’s valuation to around $3.5 billion.

Sources told IANS that Nexus and its limited partner StepStone will lead the new funding round.

The company did not immediately comment on the development.

This is the company's second big fundraise in about a year's time.

Zepto raised $200 million in August last year from StepStone Group, Goodwater Capital and other investors at a valuation of $1.4 billion, ending the unicorn drought in India.

The fundraise brought in new investors, with the StepStone Group leading the round. US-based Goodwater Capital joined the round as a new investor.

Founded in July 2021, Zepto plans to go public soon.

The quick commerce platform clocked 1,339 per cent revenue growth (year-on-year) in FY23, while its losses also widened significantly from the previous fiscal year.

Zepto's revenue grew 14 times to Rs 2,024 crore (from Rs 142.36 crore in FY22), while losses widened by three times to Rs 1,272 crore -- from Rs 390 crore in FY22.

Zepto recently said that it plans to go public in the next 2-3 years.

Three major quick delivery platforms, Zomato's Blinkit, Swiggy's Instamart and Zepto, now compete head-on with each other.