India’s quick commerce unicorn Zepto has turbocharged its war chest, raising $450 million (₹3,955 crore) in a funding round led by the California Public Employees’ Retirement System (CalPERS) — one of the world’s largest pension funds. The round, predominantly a primary infusion, also included continued support from Avenir, Avra, Lightspeed, Glade Brook, StepStone, and Nexus Venture Partners. Zepto’s valuation now rises to $7 billion, up from $5 billion just a year ago, underlining investor confidence amid a red-hot battle for market leadership in Indian grocery and essentials delivery.
Funding Trajectory and Valuation Spree
Since its 2021 launch (originally as KiranaKart), Zepto has raised over $2 billion across 11 rounds. Valuations have soared from $225 million in 2021 to $1.4 billion after a StepStone- and Goodwater-led Series E in August 2023, to $3.6 billion and then $5 billion in two huge tranches in 2024. The latest round not only highlights Zepto’s meteoric rise, but also leaves it with $900 million in net cash — making it one of the best-capitalized players ahead of a likely IPO in 2026.
Business Growth, Innovations, and Vertical Expansion
- Explosive Growth: Zepto’s order volume jumped 200% in 18 months, with most dark stores now profitable. FY25 revenue surged 150% to ₹11,110 crore (~$1.3 billion), while losses halved on better unit economics, improved margins, and optimized logistics.
- Network and Reach: It operates 100+ dark stores across top metros — including Bengaluru, Mumbai, Delhi, Chennai, Hyderabad, and Pune — offering delivery times as fast as 8-10 minutes.
- Product and Tech Innovations:
- Zepto Atom: Launched in May 2025, this AI-powered analytics and insights platform for partner brands leverages Zepto GPT, a custom-built natural language assistant, offering brands live data, recommendations, and hyperlocal performance metrics.
- Zepto Cafe: Though Zepto had to close 45-50 outlets recently citing operational challenges, this foray brought quick food and beverage delivery into their core app.
- Medicine delivery: A recently piloted vertical in metros, poised to push up average order values, though regulation and execution remain as challenges.
- App Revamp: Zepto rolled out significant UI upgrades, addressing user feedback on “dark patterns” and simplifying purchase flows.
- Unique Initiatives: The company sensationally announced plans for “fake weddings,” a campaign allowing users to apply and participate as “baraatis,” leveraging viral marketing to boost app engagement.
Read this: Zepto in Talks to Raise $450 Mn at $7 Bn Valuation, Led by US Pension Fund Calpers
Financial Performance and Market Share
- FY25 Revenue: Jumped to ₹11,110 crore from ₹4,454 crore in FY24 (up 150%).
- Order Volume: Scaled rapidly; daily orders have topped 1.7 million. Majority of stores now profitable, reflecting tighter operations and network optimization.
- Market Share: Zepto commands about 28-29% of India’s quick commerce market, trailing Blinkit’s 39% but ahead of Swiggy Instamart and other players. Rivalry with BigBasket (Tata), Flipkart, and Amazon’s rapid commerce arms further intensifies the competitive landscape.
- Profitability Outlook: Zepto is targeting EBITDA breakeven in 12-15 months, intending to reach IPO readiness with profitability and higher Indian ownership.
Strategic Shifts and IPO Prospects
While plans for a 2025 IPO are now pushed to 2026, Zepto is working to increase Indian shareholder participation to comply with domestic listing requirements. The company continues to attract institutional backers — with recent fresh investments from Motilal Oswal, MapMyIndia, Elcid Investments, and others — ensuring enough financial runway to scale up, strengthen the tech stack, and expand new business lines.
Zepto’s partnership with the Ministry of Labour & Employment marks another critical step, signing a MoU to connect youth with employment opportunities across their stores via the National Career Service (NCS) portal, further burnishing its “Make in India” credentials.
The Road Ahead
With $900 million+ net cash, a $7 billion valuation, and a robust pipeline of new ventures and platform enhancements, Zepto is well-positioned to aggressively expand while racing towards consistent profitability. Watch for further bold launches, regional expansions, and a potential blockbuster IPO that could reshape India’s quick commerce sector.
