Zepto Raises $450 Mn At $7 Bn Valuation

SUMMARY

The funding round was led by CalPERS and saw participation from existing investors including Avenir, Avra, Lightspeed, Glade Brook, the Stepstone Group, and Nexus Venture Partners

The round was a mix of primary and secondary capital, with primary transaction accounting for a large part

The funding round valued Zepto at $7 Bn, marking a jump from its $5 Bn valuation in late 2024

Quick commerce major Zepto has raised nearly $450 Mn (around INR 3,955 Cr) in a funding round led by US-based pension fund California Public Employees’ Retirement System (CalPERS).

The round was a mix of primary and secondary capital, with primary transaction accounting for a large part. It also saw participation from existing investors including Avenir, Avra, Lightspeed, Glade Brook, the Stepstone Group, and Nexus Venture Partners.

Earlier sources told Inc42 that $350 Mn to $380 Mn in the round will come via a primary transaction.

The funding round valued the quick commerce startup at $7 Bn, marking a jump from its $5 Bn valuation in late 2024. The quick commerce unicorn raised over $1 Bn in fresh capital in 2024.

“We now have approximately $900 Mn of net cash in bank and (are) more than well-capitalised for the future,” said Zepto cofounder Aadit Palicha.

Zepto said it scaled order volume 200% over the past 18 months and was able to consistently turn “more and more” of its stores profitable even as it invested in growth.

Notably, earlier this year, Zepto raised funds in small tranches from Motilal Oswal, MapMyIndia and Elcid.

The fresh capital will support Zepto in regaining market share in the quick commerce market, where Blinkit leads currently.

The development comes at a time when Zepto has been showing signs of slowing down. Its food delivery vertical, Zepto Cafe, shut 45-50 outlets citing sourcing issues and a shortage of trained kitchen staff. Order volumes in this segment have halved from a peak of 1 Lakh daily and marketing efforts have largely disappeared.

Earlier this year, Zepto deferred its initial public offering (IPO) plans. It said that the delay was due to a private funding opportunity.

On the financial front, its revenue grew 149% to INR 11,100 Cr in FY25 from INR 4,454 Cr in the previous fiscal year. However, profitability continues to elude the company. While its bottom line number for FY25 is not available, the startup posted a loss of INR 1,248.64 Cr in the previous fiscal year.