Zepto has paused its initial public offering after valuation disagreements with domestic investors. The quick commerce firm is now seeking more than ₹1000 crore in pre‑IPO funding at a valuation of $4–4.2 billion, which is about 40% lower than the $7 billion it achieved in its last private round.
Domestic mutual funds valued Zepto at only $2.5–3 billion, forcing the company to delay its listing. To bridge this gap, Zepto is raising fresh funds from existing investors including Glade Brook, General Catalyst, Goodwater Capital and Nexus Venture Partners.
The company has reduced its quarterly cash burn from ₹900 crore to ₹700 crore, a fall of nearly 22%, extending its runway by two quarters. As of March 31, Zepto held ₹5681 crore in cash reserves. Despite this, investors remain cautious because Zepto depends only on quick commerce, unlike rivals Swiggy and Eternal which also earn from food delivery.
Regulations allow up to 20% of IPO size to be raised through pre‑IPO placement, which will reduce the eventual public issue size. Zepto was last valued at $7 billion in October 2025. Its IPO draft document expires on August 21, 2026, giving limited time to complete fundraising before refiling.
Zepto remains committed to listing but will wait until profitability improves to secure better valuations.