Quick-commerce company Zepto has reportedly put its IPO plans on hold. The company is now looking to raise around Rs 1,000 crore through a pre-IPO funding round, according to multiple reports. The reported valuation for the new round is around $4.5 billion. That is sharply lower than the $7 billion valuation Zepto commanded in October 2025. The reported valuation also points to a possible 36 percent reset in less than a year. Zepto has not officially confirmed the funding round or the reported valuation.
Why Has Zepto Paused Its IPO?
The key issue appears to be valuation. Zepto was preparing for a public listing after receiving observations from the Securities and Exchange Board of India (SEBI) in May 2026. It had also filed an updated draft offer document in June. But the company reportedly faced resistance from domestic institutional investors over its valuation. Some investors are said to have valued Zepto at around $3.5 billion to $4 billion. This was below the valuation Zepto was seeking.
Reports suggest some investor bids were 30-40 percent below the company’s expectations. Instead of accepting those terms in the public market, Zepto is now looking to raise more money from existing investors.
From $7 billion to $4.5 billion
The latest valuation of Zepto was valued at $7 billion. The valuation was obtained after a $450 million fundraise in October 2025. The $450 million fundraising was led by the California Public Employees’ Retirement System, popularly known as CalPERS. The current reported valuation at $4.5 billion represents a significant drop.
A quick comparison can highlight the difference. In October 2025, the valuation of Zepto was $7 billion. On the other hand, the reported valuation in the current round of funding stands at $4.5 billion. This represents a fall of approximately 35.7%. Nonetheless, the $4.5 billion valuation was obtained from reports based on the knowledge of those who have inside information. Zepto has not confirmed any such valuation publicly. Furthermore, the $4.5 billion valuation is pre-money. Post-money valuation, after the Rs 1,000 crore fund raise, may stand at $5.1 billion.
Zepto is growing fast. But losses remain high
The valuation debate comes despite strong growth in Zepto’s business. According to its updated IPO documents, Zepto’s revenue from operations more than doubled in FY26. Revenue rose to around Rs 22,624 crore from about Rs 11,110 crore a year earlier. But the company is still making heavy losses. Its net loss increased to around Rs 5,905 crore in FY26 from nearly Rs 4,700 crore in FY25.
This is the key challenge for investors. Zepto is growing rapidly. But it has not yet reached profitability. Its adjusted EBITDA loss stood at around Rs 5,042 crore in FY26. The company has, however, improved its economics at the order level. Its EBITDA loss per order fell to around Rs 78.75 from Rs 136.15 a year earlier.
What happens to the IPO now?
The IPO has not been permanently cancelled. Zepto could return to the public markets after completing the new funding round. Reports suggest the pre-IPO round could close within a couple of weeks. The company would then need to complete the remaining regulatory and listing steps before launching the issue.
There is no officially confirmed new IPO date yet. Zepto had earlier planned a large public issue. Its updated IPO papers proposed a fresh issue of around Rs 8,010 crore, along with an offer for sale by existing shareholders. The total offering was expected to be worth around Rs 11,000-12,000 crore.
A warning sign for India’s startup IPO market?
Zepto’s move could have implications beyond quick commerce. Several new-age Indian companies have faced questions over IPO valuations in 2026. Curefoods has delayed its listing plans. PhonePe has also postponed its IPO. Flipkart’s listing plans have faced delays. The common issue is valuation.
Investors appear more cautious about paying high prices for companies that are growing quickly but are still loss-making. Zepto’s case puts that trend into focus. The company has strong revenue growth and a large consumer base. But public-market investors are also looking at its cash burn and path to profitability.
That means the next phase of India’s startup IPO market may be less about growth at any price. It could be about growth at a valuation investors are willing to accept.
Will Zepto revive its IPO?
The reported pre-IPO fundraise gives Zepto more capital and more time. But the valuation question remains. If investors continue to demand a lower price, Zepto may have to rethink the valuation at which it eventually lists. For now, the IPO is on hold. The bigger story is the valuation reset. Zepto went from a $7 billion private valuation in October 2025 to a reported $4.5 billion pre-money valuation for its latest funding round. For India’s quick-commerce sector, that is an important signal.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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