Zepto Delays IPO Amidst Significant Valuation Cut
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Zepto Delays IPO Amidst Significant Valuation Cut
- India's rapid-commerce firm Zepto has postponed its initial public offering (IPO) after investors reportedly sought a valuation as low as $2.5 billion, a substantial decrease from its peak private valuation of $7 billion in October 2025.
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The company, founded in 2021 by Aadit Palicha and Kaivalya Vohra, is now pursuing a pre-IPO funding round of approximately ₹1,000 crore (around $104-$105 million) primarily from domestic investors at a valuation of about $4.5 billion.
Indian quick-commerce startup Zepto has decided to delay its highly anticipated initial public offering, which was initially targeted for July 2026. This decision comes after public market investors proposed a valuation significantly lower than the company’s previous private funding rounds. While Zepto achieved a $7 billion valuation in October 2025 after raising $450 million in a round led by CalPERS, recent investor discussions reportedly valued the company as low as $2.5 billion.
In response to the valuation discrepancies, Zepto is now looking to raise approximately ₹1,000 crore (around $104-$105 million) in a pre-IPO funding round. This round is expected to be led by domestic investors and is reportedly aiming for a valuation of approximately $4.5 billion. The objective of this pre-IPO placement is to increase Indian shareholding in the company, which currently stands at about 40%.
Zepto, founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, has grown rapidly, expanding its dark store network and significantly increasing daily orders. Despite doubling its revenue in the fiscal year ending March 2026 and reducing its loss per order, the company’s overall net losses continued to rise, leading to investor concerns about its path to profitability. The competitive landscape in India’s quick-commerce sector, with rivals like Blinkit (owned by Eternal Ltd) and Swiggy’s Instamart having established food delivery businesses that can subsidize their quick-commerce operations, has also been a factor in investor scrutiny.