Zepto in Advanced Talks to Raise $500 Mn at $7 Bn Valuation: Report
- ByStartupStory | July 9, 2025
Mumbai-based quick commerce unicorn Zepto is reportedly in advanced discussions to raise $500 million in a fresh funding round led by existing investors General Catalyst, Avenir, and others, according to a report by Moneycontrol. The round is likely to value the company at $7 billion, marking a sharp uptick from its $5 billion valuation in November 2024.
The funding would come on the heels of Zepto raising $1.35 billion in total capital during 2024, including a $665 million Series F round followed by a $340 million top-up, as the company aggressively scaled operations.
Founded in 2021 by Aadit Palicha, Zepto has emerged as a strong contender in India’s booming quick commerce segment, competing with Blinkit, Swiggy Instamart, and BigBasket. Palicha recently said that Zepto has reached an annualised Gross Order Value (GOV) of $4 billion, growing from $1 billion to $3 billion in just eight months and recording 300% year-on-year growth.
The new funding round comes shortly after Zepto postponed its IPO plans to 2026, despite completing its reverse flip to India in January this year. The company is now focusing on enhancing profitability and reducing cash burn. It has recently suspended its Zepto Cafe operations in smaller North Indian cities such as Agra, Chandigarh, Meerut, Mohali, and Amritsar to streamline costs.
Zepto claims that a majority of its dark stores are on track to become EBITDA-positive in the coming quarter. The upcoming capital infusion is expected to bolster its tech infrastructure, supply chain capabilities, and market expansion across metros and Tier II/III cities.
According to an ICICI Securities report, Zepto’s competitors Blinkit and Swiggy Instamart witnessed higher growth in Q1 FY26, with Blinkit leading the sector. However, Zepto remains optimistic about its long-term play and is now aligning its cap table to include more domestic investors ahead of a potential India listing.
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