Zepto, India's fast-growing quick commerce giant, is reportedly in advanced talks to secure a substantial funding round of $450-$500 million, which would push its post-money valuation to an impressive $7 billion. This marks a significant 40% leap from its previous valuation of $5 billion, achieved just last year, and solidifies its position as a major contender in India's highly competitive quick commerce market.

Sources familiar with the development, as reported by CNBC TV-18 and other financial news outlets, indicate that existing investors, including prominent names like General Catalyst and Avenir Growth, are leading this fresh capital infusion. Other current investors are also expected to participate on a pro-rata basis, demonstrating continued confidence in Zepto's aggressive growth trajectory and its strategy to dominate the rapid delivery segment.

This potential funding round would be Zepto's first major fundraising exercise in 2025, following a series of successful rounds in 2024 that collectively raised over $1 billion. Notably, in November 2024, the company secured $350 million in a round led by Motilal Oswal's private wealth division, with participation from high-net-worth individuals, family offices, and Indian financial institutions. Prior to that, in August 2024, it raised $340 million at a $5 billion valuation, and a $665 million Series F round in June 2024 at a $3.6 billion valuation.

Zepto, co-founded by Aadit Palicha and Kaivalya Vohra in 2020, has rapidly scaled its operations, primarily leveraging a "dark store" model. These strategically located mini-warehouses enable the company to fulfill orders for groceries and other essential items within a promised 10-minute delivery window. This focus on speed and convenience has resonated strongly with urban consumers, particularly Gen Z and millennials, driving its explosive growth.

The company's strong financial performance in the last fiscal year further underpins its soaring valuation. Zepto reportedly doubled its revenue from operations in FY24 to ₹4,454 crore (approximately $530 million), up from ₹2,026 crore in FY23, while managing to marginally reduce its net loss by 2%. The company has also seen remarkable growth in its advertisement vertical, with its annualised revenue run-rate (ARR) from this segment surging fivefold to $200 million in 2024. Furthermore, Zepto has significantly scaled its fresh produce category, reporting 22.1 lakh units sold per day in May 2025, a fourfold increase from the previous year, achieved through direct sourcing and tech-led procurement.

This new funding comes amidst an intensely competitive quick commerce landscape in India, with major players like Zomato-owned Blinkit, Swiggy's Instamart, BigBasket, and Flipkart Minutes all vying for market share. Zepto's ability to attract such significant capital at an elevated valuation underscores investor belief in its operational efficiency, market leadership, and potential for sustained growth in a sector projected to reach $35 billion by 2030.

While the company had previously deferred its Initial Public Offering (IPO) plans to focus on improving its profitability profile, this fresh capital infusion and higher valuation will likely provide a stronger foundation as it continues to eye a public listing, possibly in 2026. The quick commerce sector, which has seen exponential growth from $300 million in 2022 to an estimated $7.1 billion by FY25, continues to be a hotbed of investment, reflecting the transformative shift in Indian consumer retail habits towards rapid online delivery.