India’s fast-growing quick-commerce platform, Zepto, has raised $450 million in a new funding round led by CalPERS (California Public Employees’ Retirement System), valuing the company at $7 billion. The funding round is one of the largest investments in the Indian startup ecosystem this year and sets the stage for Zepto’s planned IPO in 2026.
What the funding means – cash, growth and market share
Most of the round was reported to be a mixture of primary and secondary capital, with a significant portion being primary (new money into the business). Zepto’s founders say the fresh capital will be used to strengthen the company’s balance sheet, accelerate growth and help it regain market share in the highly competitive quick-commerce space. The startup also says it now has close to $900 million in net cash in the bank after the round.
Analysts and company sources note that Zepto has been expanding fast but faced some operational challenges earlier in 2025, for example, pressure in parts of its food delivery vertical and some store-level difficulties. The new funding should give it more runway to invest in logistics, customer acquisition and product improvements.
Investors, valuation and the IPO plan
Founded by Aadit Palicha and Kaivalya Vohra, Zepto’s latest funding round was led by CalPERS and included participation from existing investors such as Avenir, Lightspeed, Nexus Venture Partners, Glade Brook, StepStone Group and others. Over the past two years, Zepto has raised multiple large tranches; this round brings the company’s total fresh funding to nearly $2 billion in under two years, according to reports.
Zepto had earlier deferred plans for an initial public offering, saying at the time that private capital offered a better path. With this new backing and improved market position, Zepto is planning a 2026 listing, though final timing and markets have not been confirmed by Zepto publicly. Investors and founders typically monitor market conditions before taking that step.
Zepto Funding Summary:
| Date | Round Name | Amount | Lead Investors / Facilitators |
|---|---|---|---|
| Oct ’25 | Series H | $450M | CalPERS, Existing Investors |
| Aug ’25 | Series G | $45.6M | Corporate: Motilal Oswal |
| Aug ’25 | Series G | $2.9M | Corporate: MapmyIndia |
| Jul ’25 | Series G | $866K | Corporate: Elcid Investments |
| Nov ’24 | Series G | $350M | Institutional: Claypond Capital, Narotam Sekhsaria Family Office; Corporate: Motilal Oswal Private Wealth, Motilal Oswal AMC, Mankind Pharma, RP-Sanjiv Goenka Group, Haldiram, Cello, Happy Forgings, Mothers Recipe; Angel: Raamdeo Agrawal, Sachin Tendulkar, Abhishek Bachchan |
| Aug ’24 | Series G | $340M | Institutional: General Catalyst, Epiq Capital Advisors, StepStone Group, DST Global Partners, Contrary Capital, Dragon Funds, Lightspeed India |
| Jun ’24 | Series F | $665M | Institutional: Avra, Glade Brook Capital, Nexus Venture Partners, StepStone Group, Goodwater Capital, Avenir Growth Capital, Lightspeed India; Angel: Lachy Groom |
| Nov ’23 | Series E | $31.2M | Institutional: Goodwater Capital, Nexus Venture Partners, Mangum; Angel: Oliver Jung, Jung Lish Lee |
| Aug ’23 | Series E | $200M | Institutional: StepStone Group, Goodwater Capital, Nexus Venture Partners, Glade Brook Capital; Angel: Lachy Groom; Facilitator: Avendus |
| May ’22 | Series D | $200M | Institutional: Y Combinator, Nexus Venture Partners, Glade Brook Capital; Corporate: Kaiser Permanente; Angel: Lachy Groom |
| Dec ’21 | Series C | $100M | Institutional: Y Combinator, Glade Brook Capital, Nexus Venture Partners, Breyer Capital, Contrary Capital, Global Founders Capital; Angel: Lachy Groo |
Zepto’s financial growth
Zepto’s growth trajectory continues to impress. The company’s revenue jumped from INR 2,026 crore in FY23 to INR 4,454 crore in FY24, while losses narrowed slightly from INR 1,272 crore to INR 1,249 crore during the same period.
As per the company’s latest filings, turnover for FY25 reached INR 11,110 crore ($1.3 billion), more than doubling from the previous year. Although the company hasn’t disclosed full financials for FY25, this rise in turnover highlights growing demand for ultra-fast grocery delivery across key Indian cities.
Zepto expands ESOP pool worth over $169 million
Zepto has expanded its existing Employee Stock Ownership Plan (ESOP) by adding additional options worth more than $169 million (INR 1,486 crore), according to filings exclusively reported by Entrackr.
According to filings with the Registrar of Companies (RoC), Zepto’s board has approved 39.39 lakh new ESOP options, taking the total pool to 1.22 crore options. This expansion increases the total ESOP valuation to approximately INR 4,637 crore ($527 million).
The company is also extending an interest-free loan of up to INR 700 crore to the Zepto Employee Stock Option Trust to support the purchase or subscription of shares under the ESOP Plan I.
The ESOP expansion coincides with Zepto’s Series H funding round and is seen as part of its broader plan to reward and retain key talent as it prepares for a potential public listing next year.
Why this matters
Zepto’s latest funding and ESOP expansion show that investor confidence in India’s quick-commerce market remains strong, even amid growing competition from Blinkit, Swiggy Instamart, and BigBasket Now.
With a strong balance sheet, an expanding employee ownership plan, and solid revenue growth, Zepto appears to be gearing up for its next phase of expansion, one that could take it from startup status to one of India’s most anticipated public listings.
Nitin Konde
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