Zepto Raises $400M-$450M in Fresh Funding Amidst Growth Challenges
Zepto, the Indian quick-commerce startup led by Aadit Palicha, is in advanced talks to raise $400 million to $450 million in fresh funding. The round, expected to value the company at $7 billion, is being co-led by Calpers and General Catalyst, with other investors also participating.
The funding round will be a mix of primary and secondary share sales, with $350-380 million in primary capital and $70-100 million in secondary transactions. Despite the promising funding, Zepto's growth has shown signs of slowing. Between April and May 2025, the company added only 22 dark stores, a significant decrease from previous periods.
Zepto's revenue, however, has seen a substantial increase, jumping to Rs 11,100 crore in FY25, a 149% rise from the previous year. Yet, profitability remains a challenge for the company. Additionally, Zepto's grocery order growth has plateaued, with gross merchandise value stuck at $3 billion by April 2025. The company's food delivery vertical, Zepto Café, has also faced setbacks, closing nearly 50 outlets and seeing daily order volumes halve due to sourcing and staffing issues.
The planned funding round, led by Calpers and General Catalyst, comes amidst increasing competition in the quick-commerce space. Amazon India and Flipkart have recently entered this market, potentially posing a threat to Zepto's dominance. Despite the funding boost, Zepto must address its slowing growth and profitability concerns to maintain its position in the competitive Indian market.
