Zepto Zips Ahead: Quick Commerce Giant Nears $500 Million Raise at $7 Billion Valuation

Image Source : Business Standard

India’s quick commerce frontrunner Zepto is in the final stages of raising $450–500 million in fresh capital, propelling its post-money valuation to a staggering $7 billion. The round, led by existing investors General Catalyst and Avenir Growth, marks a 40 percent jump from its previous $5 billion valuation and underscores investor confidence in Zepto’s rapid growth trajectory.

Key Highlights From the Funding Round

- The fundraise is expected to close within a month and includes participation from existing backers on a pro-rata basis
- The capital will be used to expand Zepto’s dark store network, enhance last-mile delivery, and strengthen its tech stack
- The company has raised nearly $2 billion to date, excluding this round
- Indian ownership currently stands at 40 percent but may dip to 35 percent post-funding due to foreign institutional participation
- Zepto aims to maintain majority Indian ownership by the time of its IPO

Strategic Context and Market Dynamics

- The raise comes amid intensifying competition from Blinkit, Swiggy Instamart, BigBasket, and Flipkart Minutes
- Zepto is targeting over 700 dark stores by March 2025 and is already EBITDA-positive in 75 percent of its locations
- The company is also exploring new verticals and expanding into smaller cities to widen its addressable market

Outlook

With this funding, Zepto is poised to consolidate its leadership in India’s $150 billion quick commerce space, while laying the groundwork for a future public listing.

Sources: CNBC-TV18, Moneycontrol, NewsBytes, Economic Times, TechCrunch, Times of India