Zepto raises $450 million at $7 billion valuation as Indian quick commerce market heats up

Zepto, an Indian quick commerce startup, has raised $450 million in a funding round led by a new investor, California Public Employees' Retirement System (CalPERS), a U.S.-based pension fund. The round, which includes both primary and secondary investments, also saw participation from existing investors, including Avenir, Avra, Lightspeed, Glade Brook, and The Stepstone Group. This funding round values Zepto at $7 billion, reflecting the growing demand for quick commerce services in the Indian market. Zepto, founded in 2021, operates a 10-minute grocery delivery service, which has gained popularity in the country. The fresh capital will be used by Zepto to expand its operations, invest in technology, and strengthen its logistics network. The company plans to use the funds to increase its presence across India and enhance its product offerings. The quick commerce market in India has become increasingly competitive, with Zepto competing with other players like Swiggy Instamart, Dunzo, and Blinkit. This funding round highlights the investor interest in the sector and Zepto's potential to become a leading player in the Indian quick commerce space.