Team StartupCity

• Zepto secures $450 million in fresh funding, valuing the company at $7 billion
• Company’s cash reserves reach $900 million to fuel expansion and profitability
• Zepto aims to scale operations and prepare for a future public listing

Zepto, the quick commerce startup, has raised $450 million in a new funding round, bringing its total cash reserves to $900 million. This capital injection will help the company expand its business operations and grow its network of dark stores as it prepares for a potential initial public offering (IPO).

The recent round values Zepto at $7 billion and includes investment from the California Public Employees’ Retirement System, marking a rare direct investment by the US pension fund in a startup. Existing investors like Avenir, Lightspeed, Nexus Venture Partners, and others also participated.

Since its last funding round in August 2024, where Zepto was valued at $5 billion, the company has grown significantly. Aadit Palicha, CEO and Co-Founder, said the startup has scaled order volumes by 200 percent over the past 18 months while improving profitability across its dark store locations.

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Founded in 2021, Zepto competes with BlinkIt, Swiggy Instamart, and BigBasket in the rapidly growing quick commerce market. With big players like Amazon and Flipkart entering this space, industry experts predict the market could reach $57 billion by 2030.

With strong financial backing and a clear growth strategy, Zepto is well-positioned to lead India’s quick commerce sector and explore public markets in the near future.