Zepto Funding Round: Quick Commerce Company Raises $450 Million

Quick commerce company Zepto has successfully secured $450 million in a funding round spearheaded by the California Public Employees’ Retirement System (CalPERS), marking the U.S.-based pension fund’s initial investment in the business. This funding round included both primary and secondary investments and attracted existing backers such as Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners. Following this financial boost, Zepto has plans to initiate an initial public offering (IPO) next year.

Growth and Future Plans of Zepto

Although the Mumbai-based firm has not revealed its current valuation, discussions have centred around raising funds at a $7 billion valuation. Co-founder and CEO Aadit Palicha noted that the company has achieved remarkable growth, skyrocketing from approximately 500,000 daily orders five quarters ago to a staggering 1.7 million. He expressed confidence that this positive trend will persist.

Recent Financial Developments

Recently, Zepto secured an additional Rs 400 crore (about $48 million) from Motilal Oswal Alternates as part of its ongoing capital growth initiatives in preparation for the forthcoming IPO. In total, the company has amassed $2.3 billion since its establishment, with $1.8 billion obtained since January of the previous year.

Performance Overview

Zepto’s revenue for FY24 reached Rs 4,454 crore, over double the Rs 2,026 crore reported for FY23. While losses slightly decreased from approximately Rs 1,272 crore in FY23 to Rs 1,249 crore in FY24, filings indicated that Zepto recorded a turnover of Rs 11,110 crore ($1.3 billion) in FY25. However, the company has yet to disclose the financial results from the previous year.

Expanding into New Markets

Apart from groceries and food, Zepto is now venturing into medicine deliveries, mirroring rivals such as Swiggy Instamart, Blinkit, and Flipkart’s Minutes. The company has introduced Zepto Pharmacy in selected regions of Mumbai, Bengaluru, Delhi NCR, and Hyderabad.