Zepto raises close to $450 million at $7 billion valuation; CalPERS joins as new investor

Mumbai-based quick commerce startup Zepto has raised close to $450 million in a mix of primary and secondary transactions (majority being primary), valuing the company at $7 billion.

The round marks the entry of California Public Employees’ Retirement System (CalPERS), one of the world’s largest pension funds, alongside existing investors who have doubled down on their investments.

“This financing is a significant milestone for the company,” said Aadit Palicha, Co-founder & CEO, Zepto, in an exclusive conversation with CNBC-TV18.
“We have grown from around 500,000 orders per day in mid-2024 to about 1.6–1.7 million orders per day now. Even as we have scaled 250% in the past five quarters, we have turned hundreds of stores profitable. Those are the foundations for this fundraise.”

With this round, Zepto now has close to $1 billion in cash reserves, giving it a strong runway for growth and profitability.

The company plans to open a few hundred new stores over the next five months, expanding beyond its current network of 1,000+ dark stores. “We are also investing in technology and IP creation - from automating financial processes and building supply chain intelligence to deepening our advertising and AI capabilities,” Palicha added.

Zepto’s latest raise builds on an aggressive funding streak over the past 18 months. From a $665 million round in June 2024 at a $3.6 billion valuation, to a $340 million fundraise in August that pushed its valuation to $5 billion, followed by a $350 million all-domestic round in November 2024.

Founded in 2020 by then 19-year-olds Aadit Palicha and Kaivalya Vohra, Zepto’s journey from delivering groceries on bicycles in Mumbai during the pandemic to a $7 billion tech powerhouse has been one of India’s fastest startup scale-ups.

Technology, Palicha said, remains Zepto’s key differentiator. “We are a tech-native company. The only reason we have been able to scale from zero to billions of dollars in sales in four years is because of tech as a source of operating leverage,” he said. Zepto’s in-house AI stack powers its fast-growing advertising vertical, now at a ₹2,000 crore annualised run rate, and drives efficiency across forecasting, supply chain, and consumer experience.

On competition in India’s fiercely fought quick commerce space with players like Blinkit, Swiggy Instamart, and BigBasket, Palicha said Zepto’s focus is on cost and supply chain excellence. “If you can drive a game of supply chain and cost excellence, from sourcing to throughput to wastage, that value transitions directly to the consumer,” he said.

The company continues to deliver strong growth through India’s festive season, reporting 100–200% year-on-year jumps across key categories.

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.

From a pandemic pivot to a billion-dollar disruptor redefining how India shops, Zepto’s next stop it seems, is Dalal Street.

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