Quick commerce startup Zepto has raised $450 million in a funding round led by the California Public Employees’ Retirement System (CalPERS), marking the U.S. pension fund’s first investment in the company. The round, consisting of both primary and secondary investments, also included participation from Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners.
Following this round, Zepto has announced plans to go public next year, aiming to expand its footprint and scale operations further. While the latest valuation has not been officially disclosed, reports indicate the company was in discussions to raise funds at a $7 billion valuation.
Growth Trajectory
Since its inception, Zepto has raised $2.3 billion, including $1.8 billion since January last year. Co-founder and CEO Aadit Palicha highlighted that the company has grown from handling 500,000 daily orders five quarters ago to 1.7 million daily orders, demonstrating significant market traction.
Financial Performance
Zepto’s revenue for FY24 reached Rs 4,454 crore, more than double the Rs 2,026 crore reported in FY23. Losses narrowed slightly from Rs 1,272 crore in FY23 to Rs 1,249 crore in FY24, reflecting operational efficiencies. Preliminary filings indicate a turnover of Rs 11,110 crore ($1.3 billion) for FY25, although the company has yet to release detailed annual results.
Strategic Expansion
Beyond groceries and food, Zepto is diversifying into healthcare with Zepto Pharmacy, offering medicine delivery in select locations across Mumbai, Bengaluru, Delhi NCR, and Hyderabad. This move positions the startup alongside rivals like Swiggy Instamart, Blinkit, and Flipkart Minutes in the fast-growing quick commerce and healthcare delivery space.
With this fresh infusion of capital, Zepto is poised to strengthen its supply chain, expand its product categories, and reinforce its growth trajectory ahead of its anticipated IPO.
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