Zepto, a Mumbai-based quick commerce startup, is reportedly in advanced talks to raise $500 million in a new funding round, according to a Moneycontrol report. This round will likely be led by existing investors, including General Catalyst and Avenir, further strengthening Zepto’s position in India’s competitive instant delivery space.
Key Highlights:
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Funding Round: $500 million (in progress)
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Expected Valuation: $7 billion (up from $5 billion in Nov 2024)
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2024 Fundraising Total: $1.35 billion
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Lead Backers: General Catalyst, Avenir, and others
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Founder & CEO: Aadit Palicha
This significant capital raise comes on the heels of Zepto’s $665 million Series F round, followed by a $340 million top-up, making it one of the most well-funded startups in India this year.
IPO Plans Deferred to 2026
Initially targeting a listing sooner, Zepto has delayed its IPO to late 2025 or early 2026 due to strategic realignment and market conditions. The company completed its reverse flip to India in January 2025 and is now realigning its cap table to include more Indian investors ahead of the planned listing.
Focus Shifts to Profitability
To reduce cash burn and prepare for the public market, Zepto has:
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Shut down Zepto Café in select Tier II cities like Agra, Chandigarh, Meerut, Mohali, and Amritsar.
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Prioritized EBITDA-positive growth, with most dark stores expected to hit profitability in the next quarter.
Zepto’s operational focus is now on:
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Strengthening the tech stack
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Streamlining the supply chain
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Enhancing delivery efficiency
Fierce Market Competition
Zepto competes with Blinkit, Swiggy Instamart, and BigBasket in India’s quick commerce space. However, ICICI Securities reports show that Blinkit and Swiggy outpaced the sector in Q1 FY26, with over 25% and 22% growth in Gross Order Value (GOV), respectively.
Still, Zepto’s numbers remain impressive:
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Reached $4 billion annualized GOV (as of April 2025)
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Scaled from $1B to $3B GOV in just eight months
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Achieved 300% YoY growth and 30% growth since Jan 2025
What’s Next for Zepto?
With the new funding, Zepto aims to:
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Expand deeper into metros and Tier II/III cities
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Build a stronger domestic investor base
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Prepare for a robust India IPO debut
Final Thoughts
Zepto’s funding momentum and profitability push signal a critical shift in India’s quick commerce narrative—from unsustainable growth to sustainable scale. As the sector matures, startups that balance growth with strong fundamentals will lead the next wave of IPO-ready companies.
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