Zepto Pauses IPO Amid Valuation Concerns, To Raise ₹1,000 Cr Pre-IPO Round

A day after reports said that Zepto’s IPO plans had hit another hurdle over valuation, the quick commerce startup has now put its public listing on hold and is instead pursuing a pre-IPO fundraise. 

Sources told Inc42 that Zepto has paused work on its IPO for the time being and has begun working on a pre-IPO placement of about ₹1,000 Cr (around $105 Mn). 

Under SEBI regulations, companies can raise up to 20% of their proposed fresh issue through a pre-IPO placement, with the amount raised subsequently deducted from the fresh issue component of the IPO. 

The sources said Zepto is expected to raise the capital primarily from domestic investors. However, Moneycontrol, which reported the development first, said existing investors, including Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners, could also participate in the round. 

Queries sent to Zepto on the proposed fundraising, valuation, and IPO timeline remained unanswered till the time of publication. 

The latest development comes just a day after reports suggested that Zepto was locked in negotiations with institutional investors over its IPO valuation. Investors were reportedly valuing the startup at about $2.5 Bn-$3 Bn, significantly below the company’s expectations, raising the possibility of a delay in its public listing. 

The reported valuation marks a sharp reset from earlier expectations. Earlier this month, Inc42 reported that foreign institutional investors were valuing Zepto at about $4.5 Bn on a pre-money basis, implying a post-money valuation of around $5.1 Bn after the proposed fundraise.  

The $2.5 Bn-$3 Bn valuation now being discussed is not only significantly below Zepto’s earlier expectations but also less than half of its $7 Bn private market valuation, which it achieved after raising $450 Mn in October 2025.

Zepto’s Cash Burn Clouds IPO Plans 

Investor scrutiny around Zepto has intensified as the startup continues to burn cash in an increasingly expensive quick commerce battle.

The startup competes with Eternal-owned Blinkit, Swiggy Instamart and the quick commerce businesses of Amazon and Flipkart, all of which have been spending heavily on dark stores, discounts and customer acquisition.

Last week, Eternal CEO Albinder Dhindsa said the sector had reached “peak competitive intensity”, arguing that there was little room for rivals to deepen subsidies without further worsening their losses.

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

According to its UDRHP, the proposed IPO was to include a fresh issue of up to ₹8,010 Cr and an offer for sale of up to 11.35 Cr shares.

A large part of the fresh capital was earmarked for expansion. Zepto plans to spend ₹1,629 Cr on setting up 1,904 dark stores by FY30, ₹1,734.9 Cr on lease payments, ₹1,324.8 Cr on technology and cloud infrastructure, and ₹520 Cr on marketing. The remaining proceeds are intended for acquisitions and general corporate purposes.

A delay would also place Zepto among a growing group of new-age tech companies that have extended their IPO timelines this year. Cloud kitchen startup Curefoods recently put its listing plans on hold amid weak market conditions and valuation concerns, while PhonePe postponed its IPO earlier this year citing volatility in global equity markets.

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