Zepto Set to Raise $450 Million, Valuation Soars to $7 Billion
Quick-commerce platform Zepto is set to raise $450 million in a fresh funding round, pushing its valuation to $7 billion, according to sources. The round, a mix of primary and secondary, is being led by U.S. pension fund Calpers with participation from existing investors including General Catalyst, Avra, Lightspeed, StepStone, and Nexus Venture Partners. With this, the company will have built a $1 billion war chest to strengthen its position in India’s rapidly intensifying quick-commerce sector.
The Mumbai-based firm has so far raised $2 billion, including $1.35 billion last year, when its valuation stood at $5 billion. Zepto has also worked on reducing its cash burn, which was around ₹180 crore per quarter earlier this year, and has now dropped to double digits. New revenue streams, such as advertisements and private labels, have contributed to this improvement. In April, cofounder and CEO Aadit Palicha revealed that the advertising vertical alone had reached an annual run rate of $200 million, up from $40 million a year earlier.
The funding comes at a time when competition is heating up with Amazon and Flipkart entering the quick-commerce space, while rivals Blinkit’s parent Eternal holds $3.3 billion in cash reserves and Swiggy $1.1 billion. Media reports also suggest Tata Sons is seeking $1.3 billion for its digital platforms, BigBasket and Tata 1mg. Zepto’s move to shore up funds ensures it can continue expanding its dark stores and diversify revenue while keeping pace with deep-pocketed competitors.
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