Zepto Mulls IPO Delay As Investors Push For $2.5-$3 Bn Valuation

Zepto’s IPO plans have hit another hurdle, with the quick commerce startup reportedly considering delaying its public listing as negotiations with institutional investors point to a much lower valuation than its expectations.

According to an ET report, the valuation under discussion is about $2.5 Bn-$3 Bn. If institutional investors and Zepto fail to bridge the valuation cap, the startup is mulling deferring the IPO.

Questions sent to Zepto on valuation and IPO timeline didn’t elicit any response till the time of publication. 

The reported valuation marks a sharp reset for Zepto. Inc42 reported earlier this month that foreign institutional investors were evaluating Zepto at a pre-money valuation of about $4.5 Bn, implying a post-money valuation of about $5.1 Bn. 

The $2.5 Bn to $3 Bn valuation which the investors are seeking is not only significantly below its earlier expectations but also less than half its $7 Bn private market valuation, achieved after raising $450 Mn in October 2025.

According to the report, Zepto has received formal price indications from large institutional investors and is negotiating before deciding whether to proceed with the IPO. Its current draft prospectus remains valid until August 21.

Cash Burn Remains A Key Concern 

The development comes as investors scrutinise Zepto’s cash burn and path to profitability amid high competition in the quick commerce segment. Zepto competes with Eternal-owned Blinkit, Swiggy Instamart, and the quick commerce arms of ecommerce giants Amazon and Flipkart.

The companies are spending heavily on expanding their dark store network and acquiring market share by offering discounts. However, last week, Eternal CEO Albinder Dhindsa said that the sector has reached peak competitive intensity, arguing that there is little room for competitors to deepen subsidies further without significantly worsening their losses. 

Zepto’s net loss widened to ₹5,095 Cr in FY26 from ₹4,697 Cr in the previous year, even as operating revenue nearly doubled to ₹22,624 Cr.

According to its UDRHP, its IPO would comprise a fresh issue of up to ₹8,010 Cr and an OFS of up to 11.35 Cr shares. 

It plans to deploy a significant portion of the fresh issue proceeds to expand its operations. It has earmarked ₹1,629 Cr to set up 1,904 dark stores by FY30, ₹1,734.9 Cr towards lease payments, ₹1,324.8 Cr for technology and cloud infrastructure, and ₹520 Cr for marketing. The remaining funds will be used for acquisitions and general corporate purposes. 

If Zepto defers the listing, it would join a growing list of new-age firms that have pushed back their IPO plans this year, including PhonePe, Flipkart, and Shiprocket.

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