Zepto Reaches $7 Billion Valuation with $450M Fundraise

Swaraj

Published on October 24, 2025

In a big shot for India’s fast-delivery industry, Zepto has secured US$450 million in a financing round valuing the company at $7 billion. The investment follows intense rivalry among fast-commerce companies rushing to satisfy customers’ desire for food and essentials delivered in minutes.

Fresh investment and secondary share acquisitions combine to make up the funding round. Leading the round is the California Public Employees’ Retirement System (CalPERS), joined by former supporters Avenir, Lightspeed, Nexus Venture Partners, Avra, Glade Brook, and StepStone Group. Zepto is getting ready for a possible public listing as early as next year, thanks to these pledges.

Aadit Palicha’s company, Zepto, has seen rapid growth. The company’s daily order counts have increased from about 500,000 to nearly 1.7 million over the course of the previous year. The company says it has reached a number of operational goals: making dark shops profitable, getting more than 10 million monthly active consumers, and expanding its logistics. It has footprints spanning more than 80 cities with more than 1,000 mini-warehouses.

Central to the round’s success was Palicha’s claim that preserving unit economics during expansion was vital. He claimed that as growth speed, new customer acquisition and store openings were carefully calibrated to keep margins. The competitive scene is really fierce. Under Zomato, Zepto is directly competing with Swiggy’s Instamart, BigBasket, all of which are also promoting same-hour or super-fast delivery. Beyond just food, businesses are expanding: apparel, electronics, home items, and even home services are being incorporated into the quick-commerce strategy.

Although metros are still Zepto’s strongest markets, smaller cities are significantly increasing volume, maybe representing almost 20% of orders. Zepto is streamlining its user interface and improving category displays to handle application complexity among a large inventory. Leading this investment represents a change in direction for CalPERS. Amidst a 37.5% plunge in India’s exports, the pension fund invests through intermediaries, but its direct involvement in Zepto points to rising trust in India’s rapid delivery industry and developing markets generally.