Zepto in Final Talks to Raise $500 Million at $7 Billion Valuation: Report

Quick commerce startup Zepto is reportedly closing in on a $500 million funding round that would value the company at around $7 billion, according to a media report. The round is expected to be led by existing investors General Catalyst, Avenir, and others.

The new valuation marks a significant step-up from Zepto’s previous $5 billion mark in November 2024, when it raised $350 million. The Aadit Palicha-led firm has already raised $1.35 billion in 2024, including a $665 million Series F round and a $340 million top-up.

This fresh capital infusion comes as Zepto delays its IPO to 2026. The company completed a reverse flip to India in January 2025 and is now focusing on cutting losses and strengthening profitability before going public.

As part of this effort, Zepto has temporarily shuttered its Zepto Cafe vertical in smaller North Indian cities like Agra, Meerut, Chandigarh, Mohali, and Amritsar to rein in costs. The company is instead doubling down on its core dark store network, many of which are now EBITDA-positive, with expectations of broader profitability by the next quarter.

Zepto faces mounting competition from Blinkit and Swiggy Instamart, both of which outpaced the broader sector in Q1 FY26 with gross order value (GOV) growth of over 25% and 22% respectively, per an ICICI Securities report. In comparison, the overall quick commerce market grew under 20%.

Despite that, Zepto claims strong momentum, with CEO Aadit Palicha recently stating that the company has scaled its annualized GOV from $1 billion to $4 billion in just eight months — a 300% year-on-year increase.

The anticipated $500 million raise is expected to support Zepto’s nationwide expansion, improve operational scale, and enhance its tech and supply chain infrastructure. The company is also working to realign its cap table to include more domestic investors in preparation for a future India listing.

Founded in 2021, Zepto is one of India’s fastest-growing quick commerce players, competing with Blinkit, Swiggy Instamart, and BigBasket.

(Source: Reuters)