10-min delivery major Zepto to raise up to $450 million in funding at $7 billion valuation: Report

Aadit Palicha-led quick commerce major Zepto, which has already raised about $1.5 billion in funding in the last two years, has once again got into advanced discussions to raise between $400 million and $450 million (Rs 3,500-3,900 crore) in fresh funding at $7 billion valuation, according to media reports. 

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While there is no official announcement regarding the fundraise, Moneycontrol report indicated that the round is being co-led by the California Public Employees' Retirement System (Calpers), one of the largest pension funds in the United States, along with existing backer General Catalyst. 

Other investors, including Avra, Lightspeed, Glade Brook, StepStone, Nexus Venture Partners and Avenir, are also expected to participate.

Interestingly, the round will be a mix of primary and secondary share sales, with about $350-380 million flowing in as primary capital, while $70-100 million will change hands through secondary transactions.

The fresh raise comes amid slowing momentum in Zepto’s core business. While the company reported a sharp revenue jump to Rs 11,100 crore in FY25, up 149% from Rs 4,454 crore in FY24, profitability remains a concern.

Profitability, however, is not the only challenge. The company has also seen a slowdown in its food delivery vertical, Zepto Café, which has shut nearly 50 outlets due to sourcing and staffing issues, with daily order volumes halving from a peak of one lakh.

Meanwhile, grocery order growth has plateaued. Zepto’s gross merchandise value touched $3 billion in January 2025 but stalled short of the $4 billion mark by April, pointing to a shift from rapid expansion to consolidation. The pace of dark store additions has slowed, just 22 between April and May, compared with 118 by Swiggy Instamart and 98 by Blinkit.

Despite these challenges, investors remain bullish, especially as giants like Amazon India and Flipkart have also entered the quick commerce space.