Zepto to Raise $400 Mn at $7 Bn Valuation, CalPERS to Lead: Sources

Zepto, Zepto funding, Zepto valuation, CalPERS, Zepto investors, Quick commerce, Startup funding, Blinkit, Swiggy Instamart, Indian startups, Business news, Ascendants

Share

Quick-commerce company Zepto is set to raise approximately $400 million (≈₹3,500 crore) at a $7 billion valuation, with US pension fund CalPERS poised to lead the round, according to sources. Moneycontrol was first to report the development.

The financing is expected to be a mix of primary and secondary shares, with the bulk $350-$380 million, coming in as primary capital, sources said. Existing investors likely to participate include General Catalyst, Avra, Lightspeed, Glade Brook, StepStone, and Nexus Venture Partners. Zepto has not publicly disclosed final terms.

A year of steady capital inflows

Zepto has been raising fresh funds through 2025, including smaller tranches from listed firms such as Motilal Oswal, MapmyIndia, and Elcid, even as the company has yet to share the complete contours of its ongoing raise.

Competitive context: Blinkit leads; Zepto, Instamart tussle for No. 2

Industry watchers expect the fresh primary capital to help Zepto regain share in a fiercely contested market where Blinkit leads and Zepto and Swiggy Instamart jostle for the second spot. But the backdrop is complex: Zepto Café, the company’s food-delivery vertical has shut 45-50 outlets amid sourcing constraints and a shortage of trained kitchen staff. Daily orders have halved from a peak of ~1 lakh, and marketing activity has largely tapered off, per people tracking performance.

Core grocery: growth pause, slower store adds

Zepto’s core grocery business has plateaued in recent months. After tripling GMV to $3 billion in January 2025, the company couldn’t reach $4 billion by April, pointing to a shift from rapid expansion to operational stability. Dark-store expansion has slowed: between April and May 2025, Zepto added 22 stores, compared with 118 by Swiggy Instamart and 98 by Blinkit in the same period.

Management has introduced cost discipline, reducing headcount and curbing discounts, while increasing Indian ownership and moving toward an inventory-led model to improve margins. The company reported FY25 revenue of ₹11,100 crore, up 149% from ₹4,454 crore in FY24, though profitability remains elusive.

New bets, delayed IPO

Zepto is experimenting with medicine delivery, a higher-value basket with execution and regulatory complexity. The company’s IPO plans are on hold for now; it is leaning on external funding to sustain growth and sharpen operating metrics before heading to the public markets.

Also Read: Data Reveals Delhi NCR Beats Bangalore on Exit Efficiency

Leave the first comment