Zepto to Raise $450 Mn from US pension fund Calpers, Valuation Jumps to $7 Bn

Quick commerce unicorn Zepto is gearing up to raise $450 million in fresh funding round, led by US pension fund Calpers, at a valuation of $7 billion, according to a report published by MoneyControl.

The fundraise will also saw participation from some existing investors, including Lightspeed, Nexus Venture Partners, General Catalyst, Avra, and StepStone.

This funding round will be a mix of primary and secondary transactions. It will bolster Zepto’s capital base to $1 billion, a crucial buffer as competition intensifies with Amazon, Flipkart, Blinkit, Swiggy, and BigBasket scaling rapidly.

On the contrary, Blinkit parent Eternal sits on $3.3 billion in reserves, Swiggy holds $1.1 billion, and Tata Sons is in the market to raise $1.3 billion for its digital ventures. So far, Zepto has raised $2 billion at a valuation of $5 billion. In 2024 alone, it pulled in $1.35 billion.

In July, Zepto has also raised ₹400 crore from financial services firm Motilal Oswal Financial Services Ltd (MOFSL) in all-cash transaction. MOFSL has acquired 7.6 crore compulsorily convertible preference shares of the start-up.

Before this, a non-banking finance company (NBFC) Elcid Investments also invested an additional ₹7.5 crore in the quick commerce giant. In addition, MaymyIndia had also announced its plans to join Zepto’s cap table with an investment of ₹25 crore.

The quick commerce major has managed to slash its quarterly cash burn from about ₹180 crore to double digits. The turnaround has been driven by strong growth in advertising and private-label sales, with its ad business alone now generating an annual run rate of $200 million, up fivefold from $40 million a year ago.

Currently, Zepto aims to increase its domestic ownership to over 50% before listing. The start-up’s early foreign investors are diluting their stake, offloading 10–15% of their holding. 

Zepto’s domestic shareholding stands at 18%, but this percentage is expected to surpass 20% after the secondary deals. It is pertinent to note that Zepto’s last funding round was also led by domestic investors.

As a part of IPO process, the quick commerce start-up has done a bonus issuance, changed its name to ‘Zepto Private Limited’. It has also chosen bankers “Goldman Sachs, Morgan Stanley and Axis Capital” to pursue the listing.

The IPO timeline has reportedly been extended multiple times, with internal discussions highlighting the need for stronger financial metrics before pursuing a public listing.