Zepto to raise $450 million led by Calpers; valuation jumps to $7 billion

Quick-commerce unicorn Zepto is set to raise around $450 million in fresh funding, led by US pension fund Calpers, at a valuation of $7 billion, according to people familiar with the matter. Existing investors including General Catalyst, Avra, Lightspeed, StepStone, and Nexus Venture Partners are also participating.

The round, a mix of primary and secondary transactions, will add to Zepto’s growing war chest of $1 billion—vital as competition intensifies with Amazon, Flipkart, Blinkit, Swiggy, and BigBasket aggressively expanding. Eternal (Blinkit’s parent) has $3.3 billion in cash, while Swiggy has $1.1 billion; Tata Sons is also seeking $1.3 billion for its digital bets.

So far, Zepto has raised $2 billion at a $5 billion valuation. In 2024 alone, it pulled in $1.35 billion.

Unlike peers, Zepto has sharply cut its cash burn—from ₹180 crore a quarter to double digits—by ramping up advertising revenues and private labels. Its ad vertical alone is clocking an annual run rate of $200 million, up from $40 million last year.

However, challenges remain. Zepto Café has shuttered 45-50 outlets due to sourcing and staffing issues, and grocery GMV growth has slowed after tripling to $3 billion earlier this year. Dark store expansion too has lagged rivals, reflecting a shift from hyper-expansion to operational discipline.

While revenues surged 149% year-on-year to ₹11,100 crore in FY25, profitability remains elusive. With IPO plans delayed, external funding remains critical to sustain growth and defend market share in India’s cutthroat quick-commerce battle.