Zepto’s next big leap: Fresh fundraise paves the way for profitability, IPO launch

Quick commerce major Zepto is expected to close its latest funding round by the third week of October, according to sources familiar with the development. The round, estimated at around $500 million, will reportedly take the startup’s valuation beyond $7 billion—nearly doubling its last reported figure.

The fundraise comes at a crucial juncture for the Mumbai-headquartered firm, which has been preparing for a public listing since completing a reverse flip to India earlier this year. Zepto had initially planned to file its Draft Red Herring Prospectus (DRHP) in the first half of 2025 but decided to defer its IPO plans to focus on achieving profitability before hitting the markets. Sources now suggest that the company could revisit its IPO filing soon after this round closes.

Zepto did not respond to Business Today’s queries on the development.

The upcoming round caps a year of aggressive capital raising for the quick commerce startup. In August 2025, Motilal Oswal Financial Services invested around $48 million in the company. Earlier, in June 2024, Zepto secured $665 million, valuing the firm at $3.6 billion, followed by a $340 million follow-on round that pushed its valuation to $5 billion.

The quick commerce segment itself is witnessing robust growth, driven by rising consumer demand for instant delivery and festive season purchases. According to Datum Intelligence, the category is expected to generate around $1.6 billion in sales this festive season—accounting for nearly 12% of total online sales. The sector’s Net Order Value (NOV) is projected to grow 25–30% quarter-on-quarter during the festive quarter, signaling sustained demand momentum.

Zepto, founded in 2021 by Aadit Palicha and Kaivalya Vohra, has emerged as one of the fastest-growing players in India’s hyper-competitive quick commerce space, taking on rivals like Blinkit and Swiggy Instamart. With the fresh capital, the company is expected to expand its dark store network, enhance logistics efficiency, and double down on profitability metrics—steps that could strengthen its case for a potential listing in 2026.