Team Startupcity

• Zepto is raising $450-500 million in a fresh funding round led by existing investors General Catalyst and Avenir Growth, pushing its valuation to $7 billion, a 40% increase from last year.
• Domestic ownership may dip to 35% post-fundraise, but Zepto aims to become majority Indian-owned before its planned IPO.
• The company faces rising competition from Blinkit, Instamart, BigBasket, and Flipkart Minutes as it continues rapid expansion in India's booming quick commerce market.

Zepto, India’s fast-growing quick commerce startup, is in the final stages of raising $450–500 million in primary capital from its existing investor base, pushing its post-money valuation to a staggering $7 billion. This marks a significant 40 percent jump from its $5 billion valuation during its previous funding round in 2023.

According to sources cited by Moneycontrol, existing investors General Catalyst and Avenir Growth are anchoring the latest round, with participation from other current investors on a pro-rata basis. The deal is expected to close within the next month, as Zepto prepares for its much-anticipated IPO, though the public listing timeline has now been deferred by a few weeks.

“Apart from General Catalyst and Avenir Growth, one or two public market-focused investors may also come on board”, a source familiar with the development told Moneycontrol.

The fresh capital infusion comes amid intensifying competition in India’s quick commerce space, with established players like Blinkit (owned by Zomato), Swiggy’s Instamart, BigBasket, and Flipkart Minutes aggressively expanding their footprint. These rivals are increasingly entering new verticals, including large appliances and electronics, further heating up the battle for market share.

Despite these headwinds, Zepto is doubling down on growth. Co-founder and CEO Aadit Palicha has been actively courting both domestic and international investors. While Palicha is keen on boosting domestic ownership in the company a move that supports smoother IPO processes within India he is also in discussions with global institutional investors eager to capitalise on India’s booming quick commerce market.

In recent months, Zepto has already seen a notable shift in its cap table. Domestic investors such as Motilal Oswal and Ranjan Pai’s Calypond Capital have acquired shares worth over $100 million in secondary transactions, increasing Indian ownership in the company. Foreign early-stage backers, including Rocket Internet, sold shares to Indian investors, pushing domestic shareholding to around 40 percent.

However, with foreign institutional investors (FIIs) expected to lead the upcoming round, Zepto’s domestic ownership could drop slightly to 35 percent post-fundraise. Nonetheless, the startup remains optimistic about restoring majority Indian ownership in time for its IPO.

A senior source told Moneycontrol, “Zepto is confident that by the time it hits the public markets, the company will again be majority-owned by Indian investors, as seen with other new-age tech firms before their listings”.

So far, excluding the ongoing fundraise, Zepto has secured nearly $2 billion in funding from marquee investors like Nexus Venture Partners, The StepStone Group, and Avra. With this new round, the total capital raised by the startup will approach $2.5 billion.

Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, Zepto has become one of the fastest-growing startups in India’s hyperlocal delivery sector, known for delivering groceries and daily essentials in under 10 minutes. The company’s rapid scaling, operational efficiency, and strategic funding moves have made it one of the standout names in India’s startup ecosystem.

Zepto has yet to issue an official comment on the ongoing fundraise.