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Zepto raises $450 Mn led by CalPERS; plans IPO next year

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Zepto raises $450 Mn led by CalPERS; plans IPO next year Quick commerce company Zepto has raised $450 million in a funding round led by California Public Employees’ Retirement System (CalPERS), a U.S.-based pension fund making its first investment in the company. The round, comprising a mix of primary and secondary investments, also saw participation from existing investors including Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners. Following this round, Zepto plans to go public next year. While the Mumbai-headquartered firm did not disclose its latest valuation, it was in talks to raise funds at a $7 billion valuation. Co-founder and CEO Aadit Palicha said the company has shown strong growth, scaling from about 500,000 daily orders five quarters ago to 1.7 million, and expects this momentum to continue. Recently, Zepto also raised Rs 400 crore (around $48 million) from Motilal Oswal Alternates, as part of its ongoing capital expansion ahead of the planned IPO. The company has raised a total of $2.3 billion since its inception, including $1.8 billion since January last year. Zepto’s revenue for FY24 was Rs 4,454 crore, more than double the Rs 2,026 crore reported in FY23. The company’s losses narrowed slightly from around Rs 1,272 crore in FY23 to Rs 1,249 crore in FY24. As per filings, Zepto clocked a turnover of Rs 11,110 crore ($1.3 billion) in FY25. However, the company hasn’t disclosed its last year’s financial results. Besides grocery and food items, Zepto has also started focusing on delivering medicines like its arch rivals Swiggy Instamart, Blinkit, and Flipkart’s Minutes. The firm has launched Zepto Pharmacy in select areas of Mumbai, Bengaluru, Delhi NCR, and Hyderabad.