Zepto’s $450 million fundraise sets stage for IPO amid intense quick commerce battle

Zepto’s latest $450 million fundraise at a $7 billion valuation marks more than just investor confidence, it’s a sign the quick commerce player is gearing up for an IPO while tightening its path to profitability.

The valuation is up 40% from its previous round in November 2024, positioning Zepto closer to Blinkit and ahead of Swiggy’s Instamart in growth metrics, according to a new report by Elara Capital.

“Zepto’s latest fundraise is likely a precursor to its IPO,” said Karan Taurani, senior vice president, Elara Capital. “At a $3 billion GMV in FY25 and projected 57% GMV CAGR during FY25–28, the company is valued at 0.7x price-to-GMV—lower than Blinkit’s 1.1x multiple, which trades at a 54% premium, and higher than Instamart’s 0.3x, which sits at a 59% discount.”

Zepto’s valuation bump follows a period of financial tightening. The report notes that the company has “halved its EBITDA losses and reduced operating cash burn,” signaling early progress on its profitability focus. Taurani, however, cautioned that “managing expansion alongside profitability will remain a key monitorable.”

The report describes the quick commerce (QC) ecosystem as being in an “armed standoff,” with all major players sitting on large cash reserves. Zomato-owned Blinkit leads with a $2.2 billion cash cushion, followed by Zepto’s $900 million and Swiggy’s Instamart with around $800 million. These war chests are expected to fuel aggressive expansion as players deepen city-level penetration and invest in supply chain efficiency.

“Eternal-owned Blinkit’s stronger execution, better control over profitability, and expansion visibility justify its premium valuation,” Taurani said. Elara’s analysis projects Blinkit’s GMV to outpace Zepto’s by nearly 120% by December 2027, reflecting its faster growth trajectory.

Meanwhile, Swiggy’s Instamart appears to be slowing its expansion after opening 41 new stores in the June quarter, focusing instead on improving store-level economics and average order values through initiatives like MaxxSaver. “Instamart’s ability to achieve contribution break-even in this high-growth vertical will be key to watch,” Taurani added.

Despite intensifying competition, the report suggests that the worst of the price wars may be behind the sector. With Zepto eyeing profitability ahead of its IPO, Swiggy targeting contribution break-even by Q1FY26, and Blinkit focusing on organic growth, pricing strategies are becoming more measured.

Expansion, however, is far from over. Blinkit has revised its dark store target to FY27, aiming for 3,000 stores from the current 1,816, with 75% of new stores located in the top 10 cities. The report sees this as a signal of both continued metro densification and rising opportunities in urban, non-metro pockets.

“The next phase of quick commerce will not just be about speed or price, it will be about execution depth, unit economics, and sustained growth,” Taurani said. 

Elara continues to prefer Eternal (Zomato) among listed peers, maintaining a Buy rating with a target price of ₹415.