Zepto raises $450 million at $7 billion valuation as Indian quick commerce market heats up | TechCrunch
Key Takeaways
- Zepto raised $400 million in a funding round led by CalPERS, with plans to go public next year.
- The funding round included participation from existing investors like Avenir, Lightspeed, and Nexus Venture Partners.
- Zepto's CEO confirmed significant operational growth, reaching 1.7 million daily orders and achieving dark store profitability.
- The company faces intense competition in the quick commerce space from players like BlinkIt, Swiggy Instamart, and legacy e-commerce firms.
- The investment is notable as CalPERS rarely leads direct startup investments, signaling confidence in India's rapid delivery sector.
Indian quick commerce startup Zepto announced a successful $400 million funding round, notably led by the California Public Employeesâ Retirement System (CalPERS), marking a significant direct investment for the pension fund. The capital infusion, which includes existing investors, supports Zepto's ambition to go public in the coming year, positioning it against established competitors like BlinkIt and Swiggy Instamart. CEO Aadit Palicha emphasized the company's operational success, citing growth to 1.7 million daily orders and the profitability of its dark stores, despite pausing some offerings like Zepto Cafe in certain cities. The quick commerce market in India is projected for massive growth, with estimates reaching $42 billion by 2030, although Zepto currently lags competitors in the number of cities served by its dark store network. This investment underscores strong institutional confidence in India's rapid delivery sector and potentially signals a shift in CalPERS' strategy toward direct venture investments in emerging markets.
