Online grocery delivery startup Zepto is set to raise $450-500 million in fresh funding, says a report by CNBC-TV18. The company’s existing investors, such as Avenir, General Catalyst and others, are participating in the latest funding round, says the report.
With the latest funding round of about $500 million, the company could be valued at $7 billion, marking a 40 percent increase in the company’s valuation in about 7 months’ time. Earlier in November 2024, when Zepto raised $350 million, it was valued at $5 billion.
Why the new funding round?
Zepto had planned an Initial Public Offering (IPO) in 2025; however, the company has reportedly postponed its listing plans for 2026. As per Entrackr, Zepto is currently focusing on improving its finances and profitability, including a reduction in cash burn, before listing on the stock exchange.
While the company postponed its listing plans, it faces ever-intensifying competition from its rivals Swiggy Instamart, and Blinkit. According to a report by ICICI Securities, Blinkit and Instamart outperformed the overall quick commerce sector’s 20 percent growth in Q1FY26. Blinkit and Instamart registered a 25 percent and 22 percent increase, respectively, in their gross order value.
Amid the intensified competition, it becomes crucial for Zepto to raise a fresh amount to sustain its operation if the funding plans are delayed any further.
Zepto’s total funding and recent growth
As per the data platform Tracxn, Zepto had raised a total of $1.95 billion by its last funding round in November 2024. The latest funding of about $500 million will take Zepto’s total funding to about $2.45 billion. In 2024 alone, the Aadit Palicha-led company raised a total of $1.35 billion.
Earlier in April, Aadith Palicha said that Zepto is nearing $4 billion in annualised gross order value. He added that the company has achieved a 300 percent growth in annualised gross order value, as it stood at $1 billion about 8 months ago.