Indian startup Zepto secures fresh funding led by CalPERS, signaling global investor confidence in the quick-commerce market’s rapid rise across India.

India’s fast-growing quick-commerce sector just hit another milestone. Zepto, one of the country’s top instant delivery startups, has raised $450 million at a $7 billion valuation in a new funding round led by California Public Employees’ Retirement System (CalPERS) — one of the largest U.S. pension funds.

The round, which includes both primary and secondary investments, also saw participation from existing investors such as Avenir, Avra, Lightspeed, Glade Brook, StepStone Group, and Nexus Venture Partners. With this capital, Zepto aims to go public next year, a move that could redefine India’s digital retail landscape.

Zepto Surges Ahead in India’s Fast Delivery Race

Founded by Aadit Palicha, Zepto competes fiercely with other major quick-commerce players like Blinkit (owned by Zomato’s Eternal), Swiggy Instamart, and Tata’s BigBasket. The company has already raised over $1.3 billion in the past year alone, fueling rapid expansion.

Since its last funding in November 2024, the market has evolved dramatically — Swiggy made its stock market debut, while Blinkit overtook Zomato in gross order value for Q1 2025. Despite growing competition from giants like Flipkart and Amazon, Zepto continues to strengthen its presence in India’s major cities.

Profitable Growth and Expanding Reach

Zepto’s growth story is remarkable. The company scaled from 500,000 to 1.7 million daily orders in just five quarters. “The key metric for this round of funding was our ability to turn dark stores profitable while acquiring over 10 million new monthly users,” said Palicha.

Zepto now operates 1,000+ dark stores across 80 cities, with plans to expand further into smaller cities — which already contribute about 20% of total orders. The company’s “Super Saver” feature and fast-growing categories like electronics, fashion, and home décor have boosted user engagement, though Palicha admitted the app will be simplified soon to improve navigation.

A Strong Signal from Global Investors

This deal also marks a strategic shift for CalPERS, which typically invests through venture funds rather than leading rounds directly. Since 2022, CalPERS has expanded its venture allocation from $800 million to a targeted $5 billion, seeking greater exposure in high-growth markets.

Its decision to lead Zepto’s funding highlights rising institutional confidence in India’s quick-commerce ecosystem. Analysts from Morgan Stanley and Bernstein project the market could reach $42 billion by 2030 — and potentially $100 billion within a decade.

What’s Next for Zepto

Despite temporary pauses in its Zepto Café operations due to staffing issues, the business remains strong, generating over $110 million in annualized run rate. As Zepto continues to optimize operations and prepare for an IPO, its latest round underscores one clear trend — India’s quick-commerce revolution is just getting started.

The founders of Zepto are Aadit Palicha and Kaivalya Vohra