Zepto's valuation hits $7B after $450M funding round
What's the story
Mumbai-based quick commerce start-up Zepto has raised nearly $450 million in a mix of primary and secondary transactions. This funding round, which includes participation from the California Public Employees' Retirement System (CalPERS), one of the world's largest pension funds, has valued the company at a whopping $7 billion. This marks a significant increase from its previous valuations, including $3.6 billion in June 2024 after a $665 million round, and $5 billion in August 2024.
Expansion strategy
Rapid growth and profitability
Zepto's co-founder Aadit Palicha said the company has grown from around 500,000 orders per day to about 1.6-1.7 million orders per day now. He added that despite scaling by 250% in the last five quarters, they have made hundreds of stores profitable. With this funding round, Zepto's cash reserves are close to $1 billion, which will help them expand their network beyond the current 1,000+ dark stores over the next five months.
Tech advantage
Technology as a key differentiator
Palicha emphasized that technology is Zepto's key differentiator. He said their in-house AI stack powers its fast-growing advertising vertical, now at a ₹2,000 crore annualized run rate. It also drives efficiency across forecasting, supply chain, and consumer experience. Despite stiff competition from players like Blinkit, Swiggy Instamart, and BigBasket in India's quick commerce space, Zepto continues to report strong growth during the festive season with 100-200% year-on-year (YoY) jumps across key categories.
IPO hint
Pre-IPO financing and potential listing
Zepto was founded in 2020 by Aadit Palicha and Kaivalya Vohra. The company started delivering groceries on bicycles in Mumbai during the pandemic and has since grown into a $7 billion tech powerhouse. Palicha confirmed that the latest funding is a "pre-IPO financing," hinting at an imminent listing."You will hear news on next steps very soon," he told CNBC-TV18, indicating Zepto's potential debut on Dalal Street.