Key Points
- Indian quick commerce startup Zepto has raised $400 million in new funding.
- The major U.S. pension fund, CalPERS, led the round. Zepto now plans to go public with an IPO next year.
- The company is in a fierce competition with rivals like BlinkIt and Swiggy Instamart.
- The investment is a major sign of institutional confidence in India’s booming quick commerce market.
Indian quick commerce startup Zepto has raised $400 million in a new funding round led by the massive U.S. pension fund, CalPERS. The investment is a major vote of confidence in India’s booming, rapid-delivery market, and Zepto says it now plans to go public next year.
Zepto is in a fierce battle with a host of deep-pocketed rivals, including BlinkIt (owned by Zomato), Swiggy Instamart, and Tata-owned BigBasket. The competition is intense, and this new funding will give Zepto the firepower it needs to keep up. The startup has been on a fundraising tear, having already picked up $1.3 billion last year.
The company’s growth has been explosive. Zepto’s CEO, Aadit Palicha, said the company has scaled from 500,000 daily orders to 1.7 million in just over a year, and he expects that growth to continue.
The investment from CalPERS is particularly notable. The giant pension fund usually invests in startups through other venture capital firms, so its decision to lead this round directly signals strong institutional belief in both Zepto and the Indian market.
The quick commerce market in India is exploding, with some analysts predicting it could be worth as much as $100 billion in a decade. With this new funding and a planned IPO, Zepto is positioning itself to be a major long-term player in this hyper-competitive space.
