Summary:
Zepto raised $400 million led by CalPERS, with plans for an IPO next year
Competes with BlinkIt, Swiggy Instamart, and BigBasket in India's heated quick-commerce market
Scaled to 1.7 million daily orders and added 10 million monthly transacting users while turning dark stores profitable
Market projected to grow to $42 billion by 2030 or even $100 billion in a decade, per analyst reports
CalPERS' direct investment signals strong institutional confidence in India's rapid delivery sector
Indian quick-commerce startup Zepto has secured a massive $400 million in funding, led by the California Public Employees’ Retirement System (CalPERS), a U.S.-based pension fund. This round, a mix of primary and secondary investment, includes participation from existing backers like Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners. Following this injection, Zepto is gearing up for an IPO next year.
Zepto operates in a fiercely competitive landscape, going head-to-head with giants like Eternal’s BlinkIt, Swiggy Instamart, and Tata-owned BigBasket—all under publicly listed umbrellas. The startup has been on a funding tear, raising $1.3 billion in just a few months last year. Since its last round in November 2024, the market has shifted dramatically: Swiggy went public, and BlinkIt overtook Zomato in gross order value for Q1 2025.
Legacy e-commerce titans are also entering the fray, with Flipkart and Amazon launching their own quick-commerce services to capture the booming demand.
Beyond groceries, startups are diversifying into verticalized e-commerce. Accel-backed Swish and Zing focus on food delivery; Nykaa, Myntra, Silkk, and Blip aim for one-hour apparel delivery; Lightspeed-backed Snabbit offers home services like cleaning in under 10 minutes; and FirstClub takes a curated approach to grocery delivery.
Zepto's CEO, Aadit Palicha, is bullish on growth, noting a surge from 500,000 daily orders five quarters ago to 1.7 million daily orders today. He emphasized that the funding was driven by achieving profitability in dark stores while adding over 10 million new monthly transacting users. Despite pausing its Zepto Cafe in 44 cities due to staffing issues, the service has rebounded to a $110 million run rate and is expanding fast.
Market forecasts are overwhelmingly positive: Morgan Stanley projects India's quick-commerce sector could hit $42 billion by 2030, while Bernstein sees it reaching $100 billion in a decade, with quick commerce becoming the primary grocery shopping method in target areas.
Zepto's expansion is concentrated in major cities, with over 1,000 stores across 80+ cities, compared to BlinkIt's 204+ and Swiggy Instamart's 104+. The startup plans to add hundreds more stores in the next year and is seeing nearly 20% of orders from smaller cities, signaling broader adoption.
The app features offerings like Super Saver for bulk grocery discounts and categories like electronics and fashion, but Palicha admits the interface is cluttered and promises simplifications soon.
CalPERS' investment marks a strategic shift, as the pension fund typically avoids direct startup bets. Since 2022, it has aggressively scaled its venture allocation from $800 million to a targeted $5 billion, indicating strong confidence in India's quick-commerce sector and a growing appetite for direct investments in emerging markets. CalPERS also backs funds of Zepto's investors, such as Lightspeed and General Catalyst.
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