Zepto to raise $450-$500 million from existing investor, valuation likely to surge to $7 billion

Quick commerce platform Zepto is reportedly planning to raise $400-500 million from existing investors, which will surge the valuation of the company to $7 billion.

According to a report by Moneycontrol, Zepto's investors General Catalysts and Avenir Growth will infuse a fund of $450-500 million, along with participation from other existing investors on a pro rata basis.

The current round of funding will be completed by the end of June. Following the closure of the latest funding round, Zepto's domestic ownership will reduce to around 35%. At present, 40% of the domestic investors own stake in Zepto, including Motilal Oswal, Calypond Capital, 2 am VC, Lightspeed India, Haldiram, Cello, among others.

Last year, Zepto raised $1.35 billion, of which $350 million was infused by Motilal Oswal in November 2024 in the Series G round.

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According to data platform Tracxn, Zepto has a total of 71 investors, 54 of whom are institutional investors, including Y Combinator, and 53 others; 17 are Angel investors, including Mohandass Kalaichelvan, and 16 others.

Zepto has deferred its initial public offering (IPO) plans by a year and is likely to make a debut in the stock market in 2026.

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A Moneycontrol report said that Zepto postponed the plan as the quick commerce platform is working on bringing down its cash burn and improving its profit profile.

Besides, Zepto clocked a two-fold increase in its revenue in fiscal year 2024, while it managed to reduce the loss marginally by 2% in the same period.

Zepto's revenue from operations increased to Rs 4,454 crore in FY24 from Rs 2,026 crore in FY23. The company's advertisement vertical's annualised revenue run-rate (ARR) grew fivefold in the past year. The company's co-founder, Aadit Palicha, said that the ARR surged from $40 million to $200 million in 2024.

In the past few months, Zepto received a barrage of criticism after the food regulatory authority found violations of consumer safety norms at the company's dark stores.

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The company has scaled up its fresh produce category fourfold in a year. Zepto sold 22.1 lakh units of produce a day in May 2025 compared to 6.4 lakh units in the same period last year.

"Zepto has achieved this scale through direct sourcing, tech-led procurement, and smart last-mile handling — making fresh produce not just faster, but more accessible and affordable. Zepto works directly with thousands of farmers across 70+ collection centres — strategically located hubs where produce is graded, packed, and dispatched within 12 hours of harvest,” the company said in a statement.