Zepto Raises USD 450 Million at USD 7 Billion Valuation; Eyes IPO Filing Soon

Mumbai, October 17: Quick commerce unicorn Zepto has announced that it has secured a fresh funding of USD 450 million (approximately ₹3,757.5 crore). The California Public Employees’ Retirement System (CalPERS) led the fresh funding round. With the fresh funding, Zepto’s valuation has now reached USD 7 billion. The fresh funding marks the company’s second major fundraising round this year, as it previously raised USD 350 million round in November 2024.

Strong Financial Position and IPO Plans

Zepto’s CEO and Co-Founder, Aadit Palicha said the latest funding is being viewed as a pre-IPO round, with the company planning to file for an Initial Public Offering soon.

“We’ve closed nearly USD 450 million, and most of that is primary. The valuation of the company was USD 7 billion by the time it closed,” Palicha noted, adding that Zepto now holds around USD 900 million in net cash, providing adequate capital for its next growth phase.

He added that the company’s domestic ownership is expected to increase to 40% in the coming weeks, up from the current 12%.

Operational Growth and Profitability

The fresh fundraising of such a significant amount of USD 450 million showcases that investors are confident of the long-term value potential of the company. The company now handles about 1.7 million orders per day, and a majority of its dark stores have achieved profitability. “When we closed this financing, we had more profitable stores in our network than the entire network that existed last year,” Palicha said.

Strengthening Balance Sheet Key Aim

Zepto has announced that it plans to use the funds from the fresh funding round mainly to strengthen its balance sheet. However, it has also planned for moderate expansion using the funds. It will also aim to improve its profitability as it is considering the launch of its IPO. Furthermore, a portion of the funds will also be used for launching several hundred new stores over the next 12 months.

With this round, Zepto has further solidified its position as one of India’s fastest-growing quick commerce startups, as it prepares for a landmark IPO in the near future.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations