Zepto has deferred its highly anticipated IPO after domestic investors proposed a 68% valuation cut, valuing the rapid-commerce firm at $2.3 billion against its earlier $7.2 billion unlisted valuation. According to The Economic Times, the company faced a 68% cut to its valuation during its initial public offering roadshow last month, prompting the Indian rapid-commerce firm to delay its listing. SBI Funds Management Ltd., India's largest mutual fund, and other domestic money managers were willing to pay around ₹17-18 rupees a share in Zepto's anchor allocation, valuing the company at about $2.3 billion. This represents a significant decline from the ₹55 rupees a share at which the stock changed hands in the unofficial market in March, which implied a valuation of about $7.2 billion.
Over the weekend, Zepto said it was putting its IPO plans on hold for a few quarters and would instead raise capital through a private share sale, as reported by The Economic Times. The company has successfully completed its pre-IPO private placement, securing ₹8,010 crore through a combination of fresh equity issuance and offer for sale by existing shareholders. According to The Hindu BusinessLine, the company has raised funds at a valuation of around USD 4.5 billion (₹42,925 crore), with the capital infusion expected to be led primarily by domestic investors to increase Indian shareholding, which currently stands at around 40%. The fresh financing will add to Zepto's existing cash reserve of ₹5,681 crore, as of March 31, 2026, with the company reporting zero debt during the same period.
With geopolitical concerns weighing on market sentiment, investors have turned skeptical of valuations, especially loss-making businesses such as Zepto, said Umesh Chandra Paliwal, co-founder of UnlistedZone, as reported by The Economic Times. Zepto's funding round in October valued its shares at about ₹52 rupees apiece, which fell as low as ₹22 rupees in July before recovering to trade at about ₹27 rupees currently. Several prominent Indian investors had bought Zepto shares at ₹40.13 apiece before the IPO process began, including Motilal Oswal Financial Services Ltd. founders Motilal Oswal and Raamdeo Agrawal, Max Healthcare Institute Ltd. Chairman Abhay Soi, former Britannia Industries Ltd. Managing Director Varun Berry and actor Abhishek Bachchan, according to disclosures in the company's draft prospectus.
For the financial year 2025-26, Zepto reported revenue from operations of ₹22,624 crore and a net receivables value (NRV) of ₹24,816 crore. According to updated draft papers filed in June 2026, the company is looking to raise ₹8,010 crore through a fresh issue of shares, alongside an offer for sale of 11.35 crore equity shares by existing shareholders. The company processed an average of 17.5 lakh orders per day during FY2026, with volume surging to 23.3 lakh orders per day in the quarter ended March 2026. As of March 31, 2026, Zepto operated 1,139 stores and had an annual transacting user base of nearly 48 million.
Despite current challenges, both Eternal and Swiggy remain compelling ways to participate in India's structural quick commerce opportunity. As reported by TIGI, the IPO pause has removed temporary pressure that public reporting and capital-raising firepower would have created for Zepto's rivals. The industry is moving from growth-at-any-cost to discipline and profitability focus, with companies diversifying revenue streams through advertising (potentially ₹4,900 crore combined revenue in current calendar year) and private labels to improve economics without requiring consumers to pay dramatically more for convenience. However, the broader debate among market analysts about the sector's underlying economics continues, with fund managers growing cautious on quick commerce IPOs following uneven post-listing performance across 2024 and 2025 listings. Management remains committed to executing its long-term strategy before embarking on the next phase of its journey as a publicly listed company.
