Indian quick-commerce startup Zepto has raised $450 million in a new funding round, boosting its valuation to $7 billion. The round was led by the U.S.-based pension fund CalPERS, with participation from existing investors including Avenir, Lightspeed, and Nexus Venture Partners. Following this funding, Zepto plans to go public next year, marking a significant milestone in India’s rapidly expanding quick-commerce sector.
Zepto continues to face fierce competition from established players such as Blinkit (formerly Zomato’s Eternal), Swiggy Instamart, and Tata-owned BigBasket, as well as e-commerce giants Flipkart and Amazon, which have launched their own rapid delivery services. In the past year, Zepto has raised over $1.3 billion across multiple funding rounds, cementing its position as a market leader.
CEO Aadit Palicha highlighted that the company has scaled impressively, growing daily orders from 500,000 to 1.7 million in just five quarters. “The key metric for this funding round was our ability to turn dark stores profitable while acquiring over 10 million monthly transacting users. We invested strategically in customer acquisition and store launches, yet maintained operational profitability,” Palicha told TechCrunch.
Despite temporary operational challenges, including pausing Zepto Café in 44 cities due to staffing constraints, the service continues to generate an annual run-rate of over $110 million. The company is actively expanding into smaller cities, which now account for approximately 20% of total order volume, while planning to add hundreds of new stores in the next 12 months.
The entry of CalPERS into this funding round is particularly notable, as the pension fund usually invests through venture capital intermediaries rather than directly in startups. This move reflects strong institutional confidence in India’s fast-growing quick-commerce sector and signals a broader appetite for direct investment in emerging markets.
With rapid growth in consumer demand and strategic expansion plans, Zepto is poised to further strengthen its market leadership, supporting the anticipated growth of India’s quick-commerce sector, which is projected to reach $42 billion by 2030 (Morgan Stanley) and $100 billion within a decade (Bernstein).
