Zepto set to raise $500 mn in new funding round, valuation to touch $7 bn

Zepto's $450-500 million funding round is likely to be led by General Catalyst and Avenir, with efforts to boost Indian ownership ahead of its IPO by attracting domestic investors

Quick commerce platform Zepto is close to securing between $450 million and $500 million in a new funding round, which would take its post-money valuation to $7 billion — a 40 per cent increase over the previous year, according to a report by CNBC-TV18, citing sources.

 

The funding process is reportedly at an advanced stage and likely to conclude soon, the report added.

 

The groceries- and food-delivery firm, which counts Blinkit, Swiggy, and Zomato among its competitors, is said to be gearing up for an initial public offering (IPO) some time next year. In a move aligned with this goal, Zepto shifted its headquarters from Singapore to India earlier this year.

 

The startup was last valued at $5 billion during a funding round in 2024. Zepto’s upcoming $450–500 million funding round will see significant contributions from existing backers General Catalyst and Avenir Growth, according to a MoneyControl report. Other current investors are also expected to invest further, in line with their current shareholding. “Apart from General Catalyst and Avenir Growth, it is also likely that one or two other investors, who specialise in public markets, may participate in the ongoing round,” a source told MoneyControl.

Focus on boosting Indian ownership

Zepto co-founder and CEO Aadit Palicha is reportedly aiming to bring in more Indian investors and family offices as part of his broader effort to raise domestic shareholding in the company. At the same time, he has been holding talks with major global investors who are confident about India’s fast-growing quick commerce sector.

 

Over the past few months, investors such as Motilal Oswal have acquired more shares in Zepto through secondary deals totalling over $100 million. Some of the company’s early international backers, including Rocket Internet, sold their shares to Indian investors — a move that has helped Zepto improve its domestic ownership.

 

Having a higher proportion of Indian shareholders is seen as an advantage for companies preparing to go public in India. It can make the listing process smoother and potentially more appealing to local investors.