Zepto Secures $450 Million from CalPERS at $7 Billion Valuation, Eyes to File IPO Soon

As of October 17, 2025, the quick-commerce startup Zepto has raised $450 million in a new funding round led by the California Public Employees’ Retirement System (CalPERS). The funding values the company at about $7 billion and is being viewed as a pre-IPO round ahead of its planned public listing.

Funding Round Details

This investment comes nearly a year after Zepto’s last funding round of $350 million in November 2024, which valued the company at $5 billion. The new round was co-led by General Catalyst, with participation from existing investors such as Avenir, Glade Brook Capital, Lightspeed Venture Partners, and StepStone Group.

Out of the total funds, around $300 million was raised as primary capital. The company also expanded its employee stock ownership plan (ESOP) pool by about $170 million, taking the total ESOP value to over $500 million, according to filings accessed by The Economic Times.

Capital Position and Allocation

After this round, Zepto’s total cash reserves have reached nearly $900 million. The company plans to use the funds to strengthen its balance sheet, support operational expansion, and continue improving financial performance. Most of the newly raised amount is expected to be kept as reserve capital ahead of the IPO process.

“We’ve closed nearly $450 million, and most of that is primary. The valuation of the company was $7 billion by the time it closed. A couple of investors participated, but the largest cheque individually came from CalPERS…We are considering it a pre-IPO round, and we are hoping to file our IPO soon,” Palicha said, as per the news reports.

About Zepto

Founded in 2021, Zepto operates in India’s growing quick-commerce sector, delivering groceries and daily essentials typically within ten minutes. The company offers more than 45,000 products across categories, including groceries, household items, electronics, and apparel.

Read More: Zepto Removes 'Dark Patterns' from App Following Regulatory Pressure!

Conclusion

With the latest funding, Zepto’s valuation has increased by about $2 billion since last year. The company has also moved its base from Singapore to India earlier this year as it prepares to go public.

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