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

TechCrunch
TechCrunch
2M ago
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Zepto, an Indian quick commerce startup, raised $400 million led by CalPERS, boosting its valuation to $7 billion. This funding is significant as it highlights investor confidence in India's rapidly expanding quick commerce sector.
Zepto raises $450 million at $7 billion valuation as Indian quick commerce market heats up
A What happened
Zepto, an Indian quick commerce startup, has raised $400 million in a funding round led by the California Public Employees’ Retirement System (CalPERS), bringing its valuation to $7 billion. This funding round included both primary and secondary investments and saw participation from existing investors such as Avenir and Lightspeed. Zepto aims to go public next year, capitalizing on its rapid growth, which has seen daily orders increase from 500,000 to 1.7 million over five quarters. The company faces stiff competition from other quick commerce players like BlinkIt and Swiggy Instamart, as well as legacy e-commerce giants like Flipkart and Amazon. The quick commerce market in India is projected to grow significantly, with estimates suggesting it could reach $42 billion by 2030. CalPERS' involvement marks a notable shift towards direct investments in startups, reflecting growing institutional confidence in the Indian market.
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Key insights

  • 1

    Significant Funding Round: Zepto raised $400 million, indicating strong investor interest.

  • 2

    Market Growth Potential: India's quick commerce market could reach $42 billion by 2030.

  • 3

    Competitive Landscape: Zepto competes with BlinkIt, Swiggy, and legacy players.

  • 4

    CalPERS' Investment Strategy: CalPERS is increasing direct venture investments in emerging markets.

Takeaways

Zepto's recent funding highlights the growing confidence in India's quick commerce sector, positioning the startup for future growth and a potential public offering.

Topics

Business & Markets Economy