Zepto raises $450 million in pre-IPO funding, valued at $7 billion

Quick commerce player Zepto has raised about $450 million in a pre-IPO funding round led by US-based pension fund California Public Employees’ Retirement System (CalPERS). The round now values the company at $7 billion from $5 billion in late 2024. 

The round includes both primary and secondary transactions, with a majority in primary capital, said the company. It also saw participation from existing investors including Avenir, Avra, Lightspeed, Glade Brook, the Stepstone Group, and Nexus Venture Partners.

This fresh capital comes as the newly Bengaluru-based startup gears up for a public listing and accelerates expansion. Zepto plans to open a few hundred new stores over the next five months to strengthen its delivery network and capture more market share in India’s $500 billion-plus grocery segment.

Aadit Palicha, CEO and co-founder of Zepto, said the latest financing reflects the company’s ability to scale while improving efficiency. “This financing is a reflection of our team’s execution to grow the business rapidly while consistently building operating leverage,” he said. “We now have approximately $900 million of net cash in bank and are more than well-capitalised for the future.”

The company has seen substantial growth in order volumes, expanding from around 500,000 orders per day in mid-2024 to about 1.6–1.7 million orders per day currently. That growth has come alongside improving profitability at the store level, even as Zepto continues to invest heavily in expansion.

Vivek Subramanian, an investor in the company, said Zepto’s ability to balance scale and profitability has been key to investor confidence. “Zepto scaled order volume 200% over the past 18 months and was still able to consistently turn more and more of their stores profitable even as they invested in growth,” he said. “That performance, and the $500 billion-plus Indian grocery opportunity, gave us conviction that Zepto is building a generational consumer internet company.”

Founded in 2021 by Palicha and Kaivalya Vohra, Zepto has grown from a 10-minute grocery delivery service to a broader quick commerce platform offering over 45,000 products, including groceries, electronics, beauty essentials, and toys. 

The company’s pre-IPO raise signals investor confidence in the long-term potential of rapid commerce in India, even as it races against players like Blinkit and Swiggy Instamart to dominate the segment.