Led by U.S. pension giant CalPERS, Zepto’s latest funding round signals growing global investor confidence in India’s fast-growing quick-commerce and grocery delivery market.

India’s quick-commerce startup Zepto is making headlines again after securing a massive $450 million funding round, pushing its valuation to $7 billion. The round was led by California Public Employees’ Retirement System (CalPERS) — a rare direct investment by the U.S.-based pension fund — with participation from existing investors Avenir, Avra, Lightspeed, Glade Brook, StepStone Group, and Nexus Venture Partners.

Following this latest infusion of capital, Zepto has confirmed plans to go public next year, cementing its position as one of India’s most promising tech startups.

The Quick-Commerce Race Heats Up

Zepto is battling major players such as Blinkit (formerly Zomato’s Eternal), Swiggy Instamart, and Tata’s BigBasket, all of which operate under publicly listed parent companies. The startup’s funding success follows an aggressive capital streak — Zepto raised over $1.3 billion last year alone.

Since its last round in late 2024, competitors have also evolved: Swiggy went public, while Blinkit overtook Zomato in gross order value during Q1 2025. Now, Zepto aims to outpace both through rapid expansion, better profitability, and a growing footprint in tier-2 cities.

CEO Aadit Palicha shared that Zepto has scaled from 500,000 daily orders to 1.7 million, while also turning dark stores profitable. “Even as we invested in customer acquisition and launched new stores, we kept pushing for profitability,” Palicha told TechCrunch.

Expanding Beyond Groceries

While groceries remain Zepto’s core business, the company is broadening its reach into electronics, fashion, and home décor through its app. It also operates Zepto Café, a delivery business now exceeding $110 million in annual run rate, though it faced staffing challenges in several cities earlier this year.

Zepto currently serves over 80 cities across India with more than 1,000 dark stores, and plans to add hundreds more within the next year. Notably, nearly 20% of total orders now come from smaller cities — a clear sign of India’s quick-commerce expansion beyond metros.

According to Morgan Stanley, India’s quick-commerce market could reach $42 billion by 2030, while Bernstein projects it could even touch $100 billion within a decade.

CalPERS Makes a Rare Direct Bet

The round marks a strategic shift for CalPERS, which usually invests indirectly through venture funds. Since 2022, the pension fund has been ramping up its venture capital exposure from $800 million to a targeted $5 billion after years of underperformance.

By leading Zepto’s round, CalPERS signals both strong confidence in India’s startup ecosystem and growing interest in direct investments across emerging markets. The fund is already linked to Zepto’s existing backers Lightspeed and General Catalyst, making this deal a natural next step.

The Bottom Line

Zepto’s fresh $450 million funding not only strengthens its war chest ahead of an IPO but also reaffirms India’s leadership in the global quick-commerce revolution. With CalPERS’ backing, strong investor confidence, and an expanding user base, Zepto is positioning itself to become India’s next big tech IPO story.