Zepto raises $450 mn from US pension fund, existing backers at $7 bn valuation

Quick commerce giant Zepto has secured nearly $450 million (around ₹3,955 crore) in a funding round led by the California Public Employees’ Retirement System (CalPERS), one of the largest US-based pension funds.

The round comprised both primary and secondary capital, with the primary component forming the majority. It also saw participation from existing investors such as Avenir, Avra, Lightspeed, Glade Brook, Stepstone Group, and Nexus Venture Partners.

According to Zepto, the latest funding came at a $7 billion valuation. The company now plans to go public next year.

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Co-founder and CEO Aadit Palicha highlighted Zepto’s rapid growth, noting that daily orders have surged from 500,000 to 1.7 million over the past five quarters, with strong momentum expected to continue.

Recently, Zepto also raised ₹400 crore (around $48 million) from Motilal Oswal Alternates as part of its ongoing capital expansion ahead of its planned IPO. In total, the company has raised $2.3 billion since inception, including $1.8 billion secured since January last year.

Zepto reported a 200% increase in order volume over the past 18 months and noted that it has been able to make an increasing number of its stores profitable, even while continuing to invest aggressively in growth.

The fresh funding will help Zepto reclaim market share in the quick commerce space, where Blinkit currently leads.

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This comes amid signs of slowdown: Zepto’s food delivery arm, Zepto Cafe, closed 45–50 outlets due to sourcing challenges and a shortage of trained kitchen staff. Daily orders in this segment have halved from a peak of 1 lakh, and marketing activities have largely paused.

Earlier this year, Zepto deferred its IPO, citing a private funding opportunity as the reason.

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