Indian quick-commerce giant Zepto has raised $450 million in a new funding round at a $7 billion valuation, marking one of the largest investments in India’s fast-growing delivery sector.
The round was led by new investor CalPERS (California Public Employees’ Retirement System) — one of the world’s largest pension funds — with participation from Avenir, Avra, Lightspeed, Glade Brook, The StepStone Group, and Nexus Venture Partners.
The funding, which includes a mix of primary and secondary capital, positions Zepto for a public listing in 2026, as the company doubles down on profitability and expansion.
Rapid Growth and Profitability Drive Investor Confidence
Founded by Aadit Palicha and Kaivalya Vohra, Zepto has rapidly become one of India’s most prominent quick-commerce players, competing with Blinkit (Zomato), Swiggy Instamart, and Tata’s BigBasket.
“The key metric for this round was our ability to make dark stores profitable while acquiring over 10 million new monthly transacting users,” said Aadit Palicha, Zepto’s Co-founder and CEO.
“Even as we expanded aggressively, we maintained profitability across stores — a critical milestone for scaling efficiently.”
Over the past five quarters, Zepto has grown from 500,000 to 1.7 million daily orders, with more than 1,000 active dark stores in 80+ cities. The company plans to add hundreds more over the next year as it deepens its presence in both metro and smaller cities, where nearly 20% of orders now originate.
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Expanding Beyond Groceries
While Zepto built its reputation on grocery deliveries, it has broadened its product categories to include electronics, fashion, and home decor, alongside its popular Super Saver feature that rewards larger basket sizes. The company’s Zepto Café vertical — which offers quick delivery of beverages and snacks — has surpassed a $110 million annual run rate, though expansion was temporarily paused in some cities due to staffing challenges.
Market Momentum: Quick Commerce as India’s New Retail
India’s quick-commerce sector is heating up as consumers increasingly expect 10–30 minute delivery across categories. Analysts are bullish:
- Morgan Stanley projects the Indian quick-commerce market to reach $42 billion by 2030.
- Bernstein estimates it could hit $100 billion within a decade, noting that in key urban areas, quick commerce has become the dominant grocery channel.
Meanwhile, Flipkart and Amazon have begun experimenting with express delivery services, signaling growing competition even from traditional e-commerce leaders.
Institutional Validation from CalPERS
The round marks a rare direct venture investment for CalPERS, which typically invests through VC funds. The move underscores the pension fund’s renewed push into private tech after scaling its venture allocation from $800 million to a targeted $5 billion since 2022.
“CalPERS’ direct participation is a strong signal of institutional confidence in India’s consumer internet ecosystem,” said a Zepto spokesperson. “It also reflects a growing appetite among global pension funds to participate directly in emerging-market innovation stories.”
CalPERS is also an LP in several Zepto backers’ funds, including Lightspeed and General Catalyst, aligning with its strategy of deepening exposure to fast-scaling global technology companies.
The Road Ahead
Following this round, Zepto plans to scale its dark-store network, enhance its AI-driven supply chain systems, and prepare for an IPO in the coming year.
“We’re entering the next phase of growth — sustainable, efficient, and customer-obsessed,” said Palicha. “Our mission is simple: deliver what people need, faster than they expect.”
About Zepto
Zepto is India’s leading quick-commerce platform offering 10–30 minute delivery across groceries, beverages, and essentials. With a network of over 1,000 dark stores, Zepto combines logistics innovation, AI-driven operations, and customer-centric design to redefine convenience retail across India.
