Zepto Nears $450 Million Funding at $7 Billion Valuation

Quick commerce company Zepto is in the advanced stages of raising $450 million, or roughly ₹3,900 crore, as part of a fresh funding round. The development, reported by Moneycontrol, highlights the company’s efforts to expand its offerings, strengthen its operations, and consolidate its market position in India’s competitive quick commerce industry.

The funding round is expected to value Zepto at $7 billion, which marks a significant 40 percent jump from its $5 billion valuation just a year ago. The sharp increase comes as the company has reported more than 20 percent growth in order volumes, according to people familiar with the deal.

Breakdown of the $450 Million Funding

Out of the total $450 million, the majority portion, around $350-$380 million, will be in primary capital. This amount will directly flow into Zepto’s coffers, strengthening its balance sheet and providing funds for expansion and operational scaling.

The remaining portion, estimated between $70 million and $100 million, will take the form of secondary share transactions. In these deals, early investors will sell their shares to new or existing investors entering the round. This structure ensures both a fresh inflow of capital for the company as well as opportunities for early backers to partially exit.

Also Read: Govt Approves 3% Dearness Allowance Hike, Arrears to Be Paid in October

Calpers and General Catalyst to Lead

The round is being co-led by two significant players. On one hand, Zepto has managed to attract a new global institutional investor — the California Public Employees’ Retirement System (Calpers), a major US-based pension fund. On the other hand, General Catalyst (GC), an existing investor in Zepto, will also take part as a co-lead, showing continued confidence in the company’s growth potential.

Alongside them, several other internal investors are expected to participate to maintain their stakes. These include Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners. Their participation highlights the broad-based investor interest Zepto continues to generate even in a market environment where funding has become selective.

Neither Zepto nor Calpers responded to Moneycontrol’s queries on the fundraise at the time of reporting.

Valuation Jumps to $7 Billion

The new round will push Zepto’s valuation to $7 billion, reflecting strong investor belief in the company’s business model and growth trajectory. Just a year ago, Zepto was valued at $5 billion, and the jump represents a 40 percent increase.

The valuation surge is being attributed to Zepto’s strong growth in order volumes, which rose over 20 percent in recent months. This growth comes despite the quick commerce industry showing some cooling-off trends as rivals Swiggy, Instamart, and Zomato-owned Blinkit shifted their focus more towards profitability rather than aggressive expansion.

Impact on Quick Commerce Competition

The fresh inflow of funds into Zepto is expected to reignite competitive intensity in the quick commerce sector. Market watchers believe this fundraiser could bring back the same level of competition last witnessed 8 to 10 months ago, when companies were aggressively competing for market share with large spends on discounts, marketing, and infrastructure.

In recent months, competition has eased somewhat as players like Blinkit and Swiggy Instamart shifted their strategies towards profitable growth, cutting back on aggressive expansion. With Zepto now securing a strong capital base, the company is expected to ramp up spending again, which could shift the balance of competition in the sector.

Currently, Blinkit holds the position of the largest player in quick commerce, while Swiggy’s Instamart and Zepto often interchange between the second and third positions. This dynamic competition means that any significant funding boost for Zepto could tilt market share dynamics once again, depending on how the company deploys its fresh resources.

Market Outlook

Industry experts believe Zepto’s aggressive funding and expansion strategy signal that it is not ready to settle for the third spot. Instead, the company is likely to channel these funds into marketing, technology, and operational expansion to challenge Blinkit’s dominance and push ahead of Swiggy Instamart in the rankings.

At the same time, investors are watching closely to see how Zepto balances growth with profitability. While rivals have slowed their spending to focus on sustainable earnings, Zepto’s latest fundraise could mean that it is choosing market share expansion as its priority for the near term.

Conclusion

Zepto’s upcoming $450 million funding round, led by Calpers and General Catalyst, positions the company at a valuation of $7 billion and sets the stage for renewed competition in India’s quick commerce industry. With most of the funds going directly into the company’s expansion and the rest facilitating secondary share sales, Zepto now has the financial muscle to compete aggressively against Blinkit and Swiggy Instamart.

As the company moves forward, all eyes will be on how effectively it leverages its increased capital to grow market share while eventually aligning with industry trends that favor profitable growth. For now, the funding signals a strong vote of confidence from global and domestic investors in Zepto’s growth story.

Click here to explore:

FII DII Data
IPO
BSE Sensex