Zepto IPO Delay: Why Quick Commerce Startup Has Put Its Public Listing on Hold
Zepto has reportedly delayed its IPO plans and is instead looking to raise over INR 1,000 crore through a pre-IPO placement with existing investors. The quick commerce startup is said to be focusing on improving profitability after investor concerns over cash burn, with plans to revisit its public listing in the coming months.
Quick commerce startup Zepto has reportedly put its initial public offering (IPO) plans on hold and begun work on raising more than INR 1,000 crore (about USD 105 million) through a pre-IPO placement, according to people familiar with the matter. The proposed funding round is expected to include participation from existing investors such as Glade Brook, General Catalyst, Goodwater Capital and Nexus Venture Partners.
The move comes as the company reassesses its public market strategy amid investor concerns over its financial profile. According to reports, Zepto now intends to strengthen its profitability before reviving its IPO plans in the coming months, with the expectation of securing a higher valuation. Swiggy Stock Update: Share Price Dips Intraday Amid Downgrade & Boycott Threat.
Zepto Opts Pre-IPO Fundraise Instead of Immediate Listing
Sources told Moneycontrol that Zepto has decided to delay its IPO and pursue a pre-IPO fundraising round instead.
Under the Securities and Exchange Board of India (SEBI) rules, companies preparing for an IPO can raise up to 20% of the proposed fresh issue through a pre-IPO placement. However, any amount raised through this route must be deducted from the fresh issue portion of the IPO. Bharat Electronics Stock Update: Share Price Rises 1% on Defence Sector Tailwinds.
This means Zepto would be able to raise only the remaining amount through its eventual public offering.
IPO Size and Valuation Revised
Zepto was initially expected to raise around INR 8,000 crore through its IPO. However, the planned issue size has reportedly been reduced to INR 5,000–INR 6,000 crore.
According to the report, domestic mutual funds valued the company at around USD 2.5 billion to USD 3 billion (INR 24,000–INR 29,000 crore) after the proposed investment, significantly below the USD 5 billion valuation the company had initially sought.
Zepto was last valued at USD 7 billion during its most recent private funding round just over six months ago.
One source told Moneycontrol: “Zepto is expected to raise the capital at a valuation of around USD 4-4.2 billion. The company opted for the pre-IPO round after finding the terms proposed by domestic mutual funds for the IPO unfavourable.”
According to the report, several domestic mutual funds, including SBI Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund and HDFC Mutual Fund, expressed concerns about Zepto's cash burn.
Sources said the company had been spending more than INR 900 crore every quarter, leaving it with cash reserves for only about three quarters at one stage. The report added that Zepto has since reduced its quarterly cash burn to around INR 700 crore, extending its available cash runway by approximately two additional quarters.
Focus on Profitability Before IPO
Sources said Zepto believes improving its financial performance before approaching public markets could help it achieve a stronger valuation.
The company is reportedly aiming to return with a better profitability profile once market conditions and investor sentiment become more favourable. Zepto and the investors named in the report had not responded to Moneycontrol's queries at the time of publication.
(The above story first appeared on LatestLY on Jul 31, 2026 01:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
