Mumbai-based quick commerce startup Zepto has raised capital, from Elcid Investments, a non-banking financial company (NBFC), investing in compulsorily convertible preference shares (CCPS) up to INR 7.5 crore. This valuation puts Zepto at close to USD 6 billion (~INR 52,433 crore) and is another big step in the company’s growth journey.
Strategic Investment and Cap Table
Elcid Investments’ latest investment involves 22,55,639 equity shares at INR 33.23 per share, which will be a 0.039% stake in Zepto. Elcid was already an existing shareholder from a previous domestic round and is increasing their stake as Zepto rebalances its ownership, prioritising increase in Indian shareholding before the highly anticipated IPO in 2026.
Interestingly, Elcid’s earlier investment in November 2024 was a secondary transaction of INR 17.5 crore, showing continued institutional backing for Zepto’s business model. As per the filing, the 0.039% stake attributed to Elcid Investments is on a fully diluted basis and the stake acquisition will be completed within 25 days of the filing.
Valuation Insights and Funding Context
Zepto’s valuation is around INR 51,369 crore (USD 5.9 billion) which is a significant jump from its previous USD 5 billion (~INR 43,694 crore) valuation in November 2024. There was a brief confusion earlier but both Zepto and Elcid Investments have since clarified the numbers and Zepto’s valuation is above USD 5 billion. Market sources suggest the company is in advanced talks for a larger primary fundraise of USD 300-500 million (~INR 2,623 – 4,371 crore) which could take the valuation to USD 7 billion (~INR 61,172 crore).
This is part of a larger restructuring and the company is closing a big secondary transaction. As part of this Zepto’s founders Aadit Palicha and Kaivalya Vohra are buying INR 1,500 crore worth of shares via structured debt. This will clean up Zepto’s cap table and push Indian ownership to 42% after the company shifted its domicile to India in 2025.
Record Revenues and Better Financials
For the year ending March 2025, the company did INR 11,110 crore (almost USD 1.3 billion), up 150% from INR 4,454 crore in FY24 and INR 2,025 crore in FY23. Despite rapid growth, the company has managed to improve its unit economics and reduce cash burn. Losses have come down slightly, from INR 1,272 crore in FY23 to INR 1,249 crore in the latest cycle, and Zepto is confident of reaching EBITDA and operating cash flow breakeven in the next few months.
This is due to better fill rates, higher contribution margins and disciplined execution as the company is streamlining its cost base while scaling up aggressively.
Quick Commerce Market Remains Dynamic
Zepto’s latest fundraise comes at a time when the quick commerce space in India is super active and competitive. Blinkit (now owned by Eternal) and Instamart (Swiggy’s division) are the big players and both are expanding into new categories and experimenting with new models. Market leaders like Reliance Retail have announced plans to grow organically in the space and leverage their existing retail network to gain momentum.
Meanwhile the company has faced and overcome operational challenges, with some of its Maharashtra dark stores temporarily closed due to alleged food safety issues. After taking corrective measures, Zepto is back to normal. The company has also scaled down its 10 minute food delivery segment to focus on cost control and operational efficiency.
Looking Ahead: IPO and Profitability
As the company moves forward, the company is consolidating its gains and looking at a 2026 IPO. The leadership team, with Aadit and Kaivalya at the helm, is focused on profitability, Indian ownership and compliance – the holy trinity for a successful IPO on Indian exchanges.
Zepto’s growth and ownership story is a proof point for India’s consumer internet maturing where innovation meets disciplined financial management for long term value creation. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription, stay tuned to IPO Central.