Zepto, a quick commerce firm, is in advanced talks to raise $500 million in a new funding round led by existing investors General Catalyst, Avenir, and others.
Zepto anticipated to be valued at approximately $7 billion after the funding round, which is a substantial increase from its prior valuation of $5 billion after raising $350 million in November 2024. In 2024, the company of Aadit Palicha raised $1.35 billion.
Key Highlights
- Zepto in advanced talks to secure $500 million at $7 billion valuation led by General Catalyst.
- Valuation reflects 40% jump from $5 billion in November, ahead of refreshed IPO timeline in 2026.
This development comes shortly after Zepto postponed its planned initial public offering (IPO) until 2026. The company completed its reverse flip to India in January of this year.
Zepto is currently prioritizing lower cash burn and higher profitability in preparation for its public listing. In response to rising operational costs, the company has temporarily closed its food service arm, Zepto Cafe, in several smaller North Indian cities, including Agra, Chandigarh, Meerut, Mohali, and Amritsar.
Zepto also faces stiff competition from rivals such as Blinkit and Swiggy. ICICI Securities reported that Blinkit and Swiggy Instamart increased gross order value by over 25% and 22%, respectively, in Q1 FY26. The duo outperformed the overall quick-commerce sector, which grew at less than 20%.
In April, Palicha stated that the company's annualized Gross Order Value (GOV) is approaching $4 billion. According to him, Zepto grew from $1 billion to $3 billion in GOV in eight months, representing approximately 300% year on year growth and a 30% increase since January 2025.
Recently, Palicha stated that the majority of Zepto's dark stores are expected to become fully EBITDA-positive in the coming quarter. .Earlier this year, it closed a $665 million Series F round, followed by a $340 million round, raising more than $1 billion in 2024 alone.
Also Read: Zepto Set to Launch Subscription-Based Analytics Platform, 'Zepto Atom'
Zepto claims that the majority of its dark stores have achieved positive EBITDA, with further expansion planned across metros and Tier II/III cities. It is anticipated that the forthcoming funding will support supply chain efficiency, technology stack improvements, and operational scale.
Zepto has clarified that, subject to market conditions, it is aiming for a late-2025 to early-2026 window, despite earlier reports suggesting a delayed IPO timeline. In anticipation of a potential listing in India, the company is reportedly adjusting its capital structure to accommodate more domestic investors.
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