Zepto Secures $450 Million Funding at $7 Billion Valuation in Pre-IPO Round Led by CalPERS

Quick commerce platform Zepto announced securing USD 450 million (approximately Rs 3,757.5 crore) in its latest funding round, primarily led by the California Public Employees' Retirement System (CalPERS), achieving a valuation of USD 7 billion.

This significant investment comes approximately one year following their previous USD 350 million funding round in November, which had valued the company at USD 5 billion.

Zepto CEO and Co-Founder Aadit Palicha confirmed to PTI, "We've closed nearly USD 450 million, and most of that is primary. The valuation of the company was USD 7 billion by the time it closed. A couple of investors participated, but the largest cheque individually came from CalPERS." He added, "We are considering it a pre-IPO round, and we are hoping to file our IPO soon."

With this new capital influx, Palicha noted that the company now holds approximately USD 900 million in net cash reserves, positioning them as "more than well-capitalised for the future."

As Zepto prepares for public listing, domestic ownership within the company is expected to increase substantially from the current 12 percent to 40 percent within a few weeks.

The fundraising effort reflects growing investor confidence in Zepto, which now processes approximately 1.7 million orders daily with most of its stores achieving profitability. Palicha emphasized this progress, stating, "When we closed this financing, we had more profitable stores in our network than the entire network that existed last year."

According to the company, the newly acquired funds will primarily be utilized to maintain a healthy balance sheet while supporting moderate expansion plans. Zepto aims to continue improving its bottom line while simultaneously growing order volume. Though there is no fixed expenditure plan, the company intends to allocate a portion of the new capital toward launching several hundred new stores over the upcoming 12 months.