India's quick commerce battle just got another major cash injection. Zepto landed a massive $450 million funding round at a $7 billion valuation, with California's pension giant CalPERS leading the charge. The deal signals serious institutional money is betting big on India's 10-minute delivery revolution, especially as the market races toward an estimated $42-100 billion opportunity by 2030.
Zepto just threw down another major challenge in India's heated quick commerce battleground. The Mumbai-based grocery delivery startup announced it's raised $450 million at a $7 billion valuation, with California Public Employees' Retirement System (CalPERS) leading what marks a rare direct investment from the massive pension fund.
The timing couldn't be more strategic. Since Zepto's last funding round in November 2024, the competitive landscape has shifted dramatically. Swiggy made its public debut on India's stock exchange, while Blinkit overtook Zomato in gross order value for Q1 2025 - a clear sign that quick commerce is cannibalizing traditional food delivery.
"The key metric for this round of funding was our ability to turn dark stores profitable while acquiring over 10 million new monthly transacting users," CEO Aadit Palicha told TechCrunch. The numbers back up his confidence - Zepto scaled from 500,000 daily orders five quarters ago to 1.7 million today.
But the real story here isn't just Zepto's growth trajectory. It's how institutional money is finally waking up to India's quick commerce gold rush. CalPERS typically invests through intermediary funds rather than leading direct startup investments. The pension fund has been aggressively expanding its venture exposure since 2022, scaling from around $800 million to a targeted $5 billion after what officials called a "lost decade" of underperformance.
This shift comes as Morgan Stanley predicts India's quick commerce market could reach $42 billion by 2030, while Bernstein sees it hitting $100 billion within a decade. The analyst firm noted that in target markets, quick commerce has become the primary way people buy groceries.
Zepto's path to that IPO next year won't be easy. The company faces intensifying competition from multiple fronts. Legacy e-commerce giants Amazon and have both launched quick delivery services, while established players like Blinkit, Swiggy Instamart, and Tata-owned BigBasket continue expanding their dark store networks.
