Zepto Raises $450M at $7B Valuation Ahead of IPO Plans

Quick commerce platform Zepto has raised $450 million (approx. ₹3,757 crore) in a fresh funding round led by the California Public Employees' Retirement System (CalPERS), pushing the company’s valuation to $7 billion. This latest round follows a $350 million raise in November last year, when Zepto was valued at $5 billion.

CEO and Co-founder Aadit Palicha confirmed that the majority of the newly raised capital is primary investment, with CalPERS contributing the single largest cheque. "We view this as a pre-IPO round and are preparing to file for our IPO soon," said Palicha.

With this latest infusion, Zepto now holds around $900 million in net cash, giving it a strong financial cushion as it looks to expand. Palicha also shared that domestic ownership in the company is set to grow significantly—from the current 12% to 40% in the coming weeks, as part of its IPO readiness.

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Investor confidence in Zepto has been bolstered by its operational performance, with the company now processing approximately 1.7 million orders daily. According to Palicha, more than half of Zepto’s dark stores are now profitable, marking a sharp improvement from the previous year.

The capital will primarily support financial stability and targeted expansion, including the opening of several hundred new stores over the next 12 months. While there isn’t a rigid spending roadmap, Zepto aims to enhance its bottom line while continuing to grow its order volume and strengthen its market position.