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

Quick-commerce platform Zepto has raised $450 million at a valuation of $7 billion, led by US-based pension fund California Public Employees’ Retirement System (CalPERS), it said in a statement on Thursday.

Existing investors Avenir Growth, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners also participated in the round.

“This financing is a reflection of our team’s execution to grow the business rapidly while consistently building operating leverage. We now have approximately $900 million of net cash in the bank and are more than well-capitalized for the future,” said Aadit Palicha, co-founder and chief executive of Zepto, in the statement.

The Mumbai-based company raised $350 million in a funding round led by Motilal Oswal’s private wealth division in November 2024—its third capital raise in six months. The round included investments from Indian high-net-worth individuals (HNIs), family offices, and financial institutions, marking the largest 100% domestic fundraising in the country’s startup ecosystem ever.

It raised follow-on financing of $340 million in August 2024, led by the US-based venture capital firm General Catalyst, which increased its valuation to $5 billion. New investors Dragon Fund and Epiq Capital joined the round, while existing investors StepStone, Lightspeed, DST, and Contrary increased their stakes.

In June 2024, Zepto secured $665 million in a pre-initial public offering round at a valuation of $3.6 billion.

India’s quick-commerce sector has surpassed $10 billion in gross merchandise value (GMV), with 30 million monthly transacting users and a 15% share of the total e-commerce GMV. It has grown at approximately 150% year-over-year in the first five months of 2025, driven by the rapid expansion of dark stores, according to estimates by Redseer Strategy Consultants.

GMV, a key metric in e-commerce, measures the total value of all goods sold on a platform, excluding discounts and other expenses.

The startup, founded by Palicha and Kaivalya Vohra in April 2021, is now gearing up for an IPO in 2026, aiming for a multi-billion-dollar listing.