Zepto Plans $500M Fundraise at $7B Valuation in India

Zepto, the Indian quick commerce startup, is in advanced stages of raising $450-$500 million in fresh funding at a $7 billion valuation, marking a 40% increase since its last $5 billion valuation in 2024. The round is led by existing investors General Catalyst and Avenir Growth, with other investors participating pro rata, and is expected to close within a month. Zepto has postponed its planned IPO from 2025 to 2026 to focus on improving profitability and reducing cash burn amid intensifying competition from rivals like Blinkit and Swiggy Instamart. Despite a slight decline in Indian investors' ownership from 40% to about 35% due to new foreign investments, Zepto aims to maintain majority Indian ownership by the time of its eventual IPO. The fresh capital will help Zepto compete in the growing quick commerce market, where players like Blinkit and Instamart have been outperforming sector growth. The company has raised a total of approximately $2.45 billion to date, including $1.35 billion in 2024 alone, reflecting strong investor confidence in its growth prospects.