Funding · Commerce & Consumer Brands
Zepto to raise $500 million at $7 billion valuation from General Catalyst, Avenir and others
By Startup Enthusiast ·
- Date
- Company
- Zepto
- What it does
- quick commerce platform
- Kind
- Funding
- Amount
- $450-500 million
- Stage
- Series G
- Based in
- Mumbai
- Founded
- 2021
What they do
Zepto is a quick commerce platform that delivers groceries and food items quickly to customers in India
What happened
The company is in advanced talks to raise $500 million in a new funding round, which would value the company at $7 billion, a 40% increase from its previous…
Why it matters
The funding round is expected to be led by existing investors General Catalyst and Avenir Growth, with participation from other current investors on a pro…
The details
- Zepto is raising $500 million in a new funding round, which would value the company at $7 billion, a 40% increase from its previous valuation of $5 billion.
- General Catalyst and Avenir Growth are expected to lead the round, with other existing investors also participating on a pro rata basis.
- Zepto is preparing for an initial public offering (IPO) in late 2025 to early 2026, contingent on market conditions.
- Motilal Oswal and other Indian investors have already participated in a $500 million domestic secondary transaction, increasing domestic ownership to around 40%.
- Zepto is facing strong competition from rivals such as Blinkit and Swiggy Instamart, which have shown faster growth in the quick commerce sector.
The bigger picture
- Zepto is raising capital to support operational scale, enhance its tech stack, and improve supply chain efficiencies.
- Zepto is shifting its headquarters from Singapore to India to align with its IPO plans and increase domestic ownership.
- Zepto has already raised $1.35 billion in 2024, including a $665 million Series F round and a $340 million top-up.
- Zepto is targeting an annualized Gross Order Value (GOV) of $4 billion, with a 300% year-on-year growth in GOV from $1 billion to $3 billion in eight months.
About the business
- Zepto is a quick commerce platform that delivers groceries and food items quickly to customers in India.
- Zepto operates a network of dark stores to fulfill orders efficiently and has plans to expand further into metros and Tier II/III cities.
- Zepto has temporarily shut down its food service arm, Zepto Cafe, in several smaller North Indian cities to reduce costs and improve profitability.
- Zepto is focusing on lower cash burn and stronger profitability ahead of its public listing.
- Zepto claims that a majority of its dark stores have turned EBITDA positive, indicating improved financial performance.
What happens next
- Zepto is targeting an IPO in late 2025 to early 2026, contingent on market conditions.
- Zepto plans to expand its operations further into metros and Tier II/III cities.
- Zepto is focusing on lower cash burn and stronger profitability ahead of its public listing.
The deal
- Type
- funding
Investors
- General Catalyst (lead) — A venture capital firm that focuses on early-stage technology investments.
- Avenir Growth (lead) — An investment firm that focuses on growth-stage technology companies.
- Motilal Oswal (participated) — A financial services company that has invested in Zepto through secondary transactions.
- Ranjan Pai’s Calypond Capital (participated) — An investment firm that has invested in Zepto.
- Rocket Internet (participated) — An early investor in Zepto that sold shares to Indian investors.
Founders
- Aadit Palicha, co-founder and CEO
About Zepto
- Product
- A rapid-delivery app for groceries and everyday essentials.
- Customers
- Consumers ordering groceries and essentials online.
- How it makes money
- It earns from product margins, delivery fees, and order-value thresholds across its quick-commerce network.
- What sets it apart
- It was built as a quick-commerce native company from day one.
- Operations
- Operates dark-store based 10-minute delivery across multiple Indian cities.
Other articles talking about it
More on Zepto
- Zepto faces FSSAI penal action over misleading food claims24 September 2026 · Policy
- Zepto delays IPO to 2027 and reduces issue size12 September 2026 · IPO · ₹8,100 Cr
- Zepto partners with Databricks and VOKKA9 September 2026 · Partnership
- Zepto postpones IPO, shifts strategy1 September 2026 · Policy
- Zepto partners with VOKKA, Mia, Eveready for Rakhi and recycling29 August 2026 · Partnership
- Zepto launches premium grocery service named Select19 August 2026 · Launch
- Zepto delayed IPO after agreeing to close pre-IPO funding round17 August 2026 · Policy
- Zepto files IPO prospectus for fresh issue14 August 2026 · IPO · up to ₹8,010 Cr