Quick commerce major Zepto is planning to raise around $400 Mn (about INR 3,500 Cr) at a valuation of $7 Bn, with US pension fund Calpers leading the round, according to sources.
Other existing investors, including General Catalyst, Avra, Lightspeed, Glade Brook, StepStone, and Nexus Venture Partners, are also expected to participate in the round.
The round will be a mix of primary and secondary transactions, with a large chunk of $350-380 Mn coming in via primary transaction.
Zepto declined to comment. Moneycontrol was first to report the development.
Important to note that the startup has been consistently raising fresh funds this year. It has raised smaller tranches of capital from listed companies including Motilal Oswal, MapMyIndia and Elcid. However, the complete extent of the funding round is yet to be shared by the startup.
The quick commerce unicorn raised over $1 Bn in fresh capital in 2024, raising $665 Mn in June and $340 Mn in August at a valuation of $5 Bn.
The fresh capital is expected to help Zepto regain market share in the highly competitive quick commerce space, where Blinkit leads, and Zepto and Swiggy Instamart constantly vie for the second spot.
However, Zepto's recent performance has shown signs of slowdown. Its food delivery vertical, Zepto Cafe, has shut 45-50 outlets due to sourcing issues and a shortage of trained kitchen staff. Order volumes in this segment have halved from a peak of 1 Lakh daily, and marketing efforts have largely disappeared.
Even its core grocery business has plateaued. After tripling its gross merchandise value (GMV) to $3 Bn in January 2025, Zepto could not reach $4 Bn by April, suggesting a shift from aggressive expansion to operational stability. Dark store additions, the backbone of quick commerce, have slowed sharply; between April and May 2025, Zepto added only 22 stores compared with 118 by Swiggy Instamart and 98 by Blinkit.
The startup has also introduced cost discipline, reducing headcount and curbing discounts, while increasing Indian ownership to move toward an inventory-led model for better margins. Despite these, Zepto's revenue growth remains strong at INR 11,100 Cr in FY25, up 149% from INR 4,454 Cr in FY24, but profitability continues to elude the company.
Zepto is also experimenting with new verticals such as medicine delivery, which could increase order values but comes with significant execution and regulatory challenges. With its IPO plans delayed, the startup is relying heavily on external funding to continue growth while improving operational efficiency before going public.