Zepto raises $450M led by CalPERS, now valued at $7B

Quick commerce unicorn Zepto announced that it has raised $450 million in a round led by US-based pension fund California Public Employees' Retirement System (CalPERS). This latest funding round comprises a mix of primary and secondary transactions, with a majority in primary.

Existing investors Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners have also participated in the round.

Zepto's valuation now stands at $7 billion.

"This financing is a reflection of our team's execution to grow the business rapidly while consistently building operating leverage. We now have approximately $900 million of net cash in the bank and are more well-capitalised for the future," Aadit Palicha, CEO and Co-founder of Zepto, shared in an official statement issued by Zepto.

The fundraise news comes at a time when Zepto Cafe CXO Shashank Sharma exited the company to join FoodStories, as reported by YourStory.

The quick commerce giant had earlier announced closing a Rs 400 crore fund on August 13, this year, from Motilal Oswal Financial Services. Prior to that, it had raised Rs 7.5 crore from Elcid Investments, a Mumbai-based NBFC, at a $5 billion valuation.

The company has been gearing up for its public debut, focusing on unit economics and keeping industry hazard high cash burn on check. Its revenue surged 2.5x year-on-year to Rs 11,110 crore in FY2025, up from Rs 4,455 crore in FY2024, and Rs 2,024 crore in FY2023, marking a consistent doubling in top-line growth each year, according to ROC filings.

"Zepto scaled order volume 200% over the past 18 months and was still able to consistently turn more and more of their stores profitable, even as they invested in growth. That performance, and the $500 billion-plus Indian grocery opportunity, gave us conviction that Zepto is building a generational consumer internet company," said Vivek Subramanian, Partner and Chief Product Officer at Goodwater Capital, and existing investor at Zepto.