Zepto Valued at $7 Billion After $450 Million Funding Round
The popular 10-minute delivery platform, Zepto, announced raising a fresh funding round of $450 million. The influential US pension fund CalPERS (California Public Employees’ Retirement System) led the investment, making Zepto’s valuation catapult to $7 billion.
Quick commerce giant Zepto has secured $450 million in a pre-IPO funding round led by the California Public Employees’ Retirement System (CalPERS), a prominent US pension fund. This investment values Zepto at $7 billion, representing a 40% increase from its previous valuation of $5 billion last year.
Key Highlights:
Funding Details: The round saw participation from existing investors, including General Catalyst, Lightspeed, and Goodwater Capital, with approximately $300 million raised as primary capital.
Domestic Ownership: Following the funding, domestic ownership in Zepto has increased to 40%, up from 12%.
Business Performance: Zepto has seen rapid growth, with order volumes reaching 1.6-1.7 million per day and a significant number of its stores turning profitable. The company now operates over 1,000 dark stores across major cities.
Future Plans:
– IPO: Zepto is planning to file for an initial public offering (IPO) next year, with Goldman Sachs and Morgan Stanley reportedly in talks to lead the IPO.
Expansion: The company aims to expand its dark store presence, enhance its technology and AI capabilities, and explore international markets like Dubai and Singapore.
Revenue Growth: Zepto expects to cross $1.5 billion in annualized revenue by the end of FY2026.
Competitive Landscape:
Zepto is a major player in India’s quick commerce market, competing with the likes of Blinkit (owned by Zomato) and Swiggy Instamart. With its strong valuation and funding, Zepto is well-positioned to challenge its competitors and expand its market share .
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