Mumbai-based quick commerce startup Zepto is in the final stages of raising $500 million in a fresh funding round that could value the company at $7 billion, according to a report by Moneycontrol. The round is expected to be led by existing investors including General Catalyst and Avenir, marking a substantial leap from its previous $5 billion valuation during its $350 million raise in November 2024.
This potential fundraise would take Zepto’s total capital raised in 2024 to over $1.85 billion, following its $665 million Series F round and a $340 million top-up earlier this year. The company, led by Aadit Palicha, has emerged as a major player in India’s fast-paced quick commerce space, competing head-to-head with Blinkit, Swiggy Instamart, and BigBasket.
The funding news comes at a time when Zepto has deferred its IPO plans to 2026, with the company now focused on profitability and operational efficiency. Zepto completed its reverse flip to India in January and is aligning its cap table to bring in more domestic investors as it prepares for a potential local listing.
To reduce cash burn and boost margins, Zepto recently paused operations of its Zepto Cafe food service arm in several smaller North Indian cities including Agra, Chandigarh, Meerut, Mohali, and Amritsar. Despite growing competition, Zepto has shown remarkable traction—scaling its annualized Gross Order Value (GOV) from $1 billion to $3 billion in just eight months, and now nearing $4 billion, according to Palicha.
While rivals Blinkit and Swiggy Instamart posted over 25% and 22% growth in Q1 FY26 respectively—surpassing the overall quick commerce sector’s sub-20% expansion—Zepto claims it is gaining ground with a majority of its dark stores becoming EBITDA positive and more expected to follow in the next quarter.
The upcoming round is expected to power tech upgrades, supply chain enhancements, and aggressive expansion into metros and Tier II/III cities, solidifying Zepto’s position in one of India’s most competitive consumer segments.
Founded in 2021, Zepto’s meteoric rise reflects both the growing demand for rapid delivery and investor confidence in the long-term potential of quick commerce in India.
