Zepto Raises $400 Million to Propel India’s Quick Commerce Revolution

Significant Capital Injection Led by CalPERS Demonstrates Strong investor Trust

Zepto, a leading player in India’s quick commerce sector, has secured $400 million in a recent funding round led by the California Public Employees’ Retirement system (CalPERS), a major U.S. pension fund. This round, which included both primary and secondary investments, attracted continued support from investors such as Avenir, Avra, Lightspeed, Glade Brook, The Stepstone Group, and Nexus Venture Partners. The fresh capital is earmarked to fuel Zepto’s rapid expansion and prepare for a public listing anticipated in the coming year.

India’s Quick Commerce Arena: navigating a Fierce Competitive Surroundings

Operating in a highly contested market, Zepto competes with established quick commerce platforms like BlinkIt (previously part of Zomato), Swiggy Instamart, and BigBasket under tata group’s umbrella-all subsidiaries of publicly traded companies. Over the last twelve months, Zepto has impressively raised approximately $1.3 billion through multiple funding rounds. Meanwhile, Swiggy recently debuted on the Indian stock exchange, and BlinkIt surpassed zomato in gross order value during the first quarter of 2025.

In addition to these quick commerce specialists, Zepto faces competition from e-commerce giants Flipkart and Amazon, both aggressively expanding their rapid delivery services across India’s urban landscapes.

Emerging Niches: specialized Verticals Within Quick Commerce

Several startups are differentiating themselves by focusing on specific quick commerce verticals, moving beyond general grocery delivery:

• zipeats, supported by Sequoia Capital, concentrates on delivering fresh meals within 30 minutes in select metro areas.
• StyleRush, a fashion delivery service backed by Tiger Global, promises customers clothing and accessories within an hour.
• HomeSwift, funded by Matrix Partners, offers on-demand home maintenance and cleaning services with bookings confirmed in under 15 minutes.
• EliteGrocer emphasizes premium grocery selections with curated assortments, prioritizing quality over speed.

Scaling Operations: Rapid Growth in orders and Geographic Reach

Zepto’s CEO Aadit Palicha highlights a surge from 500,000 daily orders five quarters ago to nearly 1.7 million today, with projections indicating continued momentum. The company has concentrated on enhancing profitability through its network of dark stores while simultaneously onboarding over 10 million new monthly active users.

“Achieving profitability in our dark store operations amid aggressive expansion and customer acquisition was a pivotal milestone during this funding phase,” Palicha remarked.

Addressing Operational Hurdles: Temporary Suspension of zepto Cafe Locations

The brand’s foray into food services via Zepto Cafe across northern Indian cities faced staffing challenges that led to the temporary closure of 44 outlets. Despite this pause, the cafe segment maintains an annualized revenue run rate exceeding $110 million and is poised for rapid growth once workforce issues are resolved.

The Future Outlook: Quick Commerce Set to Transform India’s Retail Landscape

Industry forecasts predict explosive growth for quick commerce in india. Morgan Stanley estimates the market could reach $42 billion by 2030, while Bernstein projects it may soar to $100 billion within a decade. Analysts emphasize that quick commerce is rapidly becoming the preferred grocery shopping method among urban consumers nationwide.

Expanding Footprint: Store Networks and City Coverage

Currently focused mainly on metropolitan hubs like Mumbai and Delhi NCR, Zepto operates over 1,000 dark stores spanning more then 80 cities across India. For comparison:

• BlinkIt fulfills orders through warehouses located in upwards of 204 cities;
• Swiggy Instamart serves approximately 104 cities;
• Zepto plans to add several hundred additional stores within the next year targeting tier-2 markets where nearly one-fifth of total order volume now originates.

User Interface Improvements Amid Growing App Complexity concerns

The Zepto app offers various promotions such as Super Saver discounts encouraging bulk purchases alongside categories including electronics and home decor; however, these additions have contributed to interface clutter that complicates navigation for users. Palicha acknowledged these concerns publicly and committed to streamlining the app experience soon without sacrificing product variety or deal availability.

A Strategic Investment Reflecting CalPERS’ Growing Interest in Emerging Market Startups

This funding round marks an uncommon direct venture capital investment from CalPERS-an institution traditionally investing indirectly via funds rather than leading early-stage startup rounds outside North America or Europe. Since ramping up its venture allocation post-2022 after years labeled as a “lost decade,” CalPERS has expanded its exposure from around $800 million toward an ambitious target near $5 billion.
This move signals strong institutional confidence not only in India’s burgeoning quick commerce ecosystem but also highlights increasing appetite among large pension funds for direct stakes within emerging market innovation hubs.
CalPERS already holds indirect positions through funds backing some of Zepto’s investors such as Lightspeed Ventures and General Catalyst.

A Snapshot of Quick Commerce Impact Through Real-Life Examples Across India

An illustrative case comes from tier-3 city Vadodara where local demand surged following recent service expansions; residents now enjoy grocery deliveries within minutes-a stark contrast compared with customary multi-day waits just two years prior.
Similarly, Hyderabad-based HomeSwift has gained traction by enabling customers to book home cleaning services confirmed within ten minutes-demonstrating how verticalized quick commerce models can thrive beyond groceries.
These examples highlight how rising consumer expectations around immediacy are reshaping retail experiences throughout India.

Conclusion: Positioned for IPO Amid Intensifying Competition & Expanding market Potential

Zepoto distinguishes itself among India’s fast-growing quick commerce startups through aggressive scaling combined with operational discipline focused on enduring profitability.
With fresh capital led by global institutional investors like CalPERS supporting future ambitions-including expanding store footprints beyond major metros-the company appears well-prepared ahead of its planned IPO next year.
As competition heats up between legacy e-commerce giants Flipkart/Amazon alongside specialized players like BlinkIt & Swiggy Instamart,
the evolving landscape promises dynamic innovation benefiting consumers seeking convenience without compromise.