e-commerce
Zepto likely delays IPO as it lines up $4.5 billion pre IPO funding
Quick commerce firm eyes domestic capital as listing may shift by two to three quarters
MUMBAI: Looks like Zepto has decided that timing, not speed, wins this delivery race. The quick commerce company is reportedly pressing pause on its stock market debut, choosing to strengthen its balance sheet through a fresh pre-IPO funding round as it waits for more favourable market conditions.
Zepto now expects to go public in two to three quarters, with co-founder and CEO Aadit Palicha reportedly sharing the revised timeline with employees during a town hall on Friday. The report added that the company’s approval to list remains valid until November next year, meaning it does not need to refile its IPO documents.
The reported delay comes after investors reportedly pushed back on Zepto’s valuation expectations. According to the report, domestic investors valued the company at around $3 billion to $3.5 billion, significantly below the $7 billion valuation at which it raised $450 million in October 2025.
While acknowledging ongoing discussions with public market investors, Zepto maintained that its immediate priority remains execution. The company said it plans to update its Draft Red Herring Prospectus (DRHP) with fresh financial and operating results over the coming quarters and intends to list within the timeframe permitted by SEBI under its approved Updated Draft Red Herring Prospectus (UDRHP).
In parallel, the company announced a pre-IPO private placement of equity after reaching an agreement with major shareholders. The round is expected to be completed at a valuation of about $4.5 billion, or nearly Rs 42,925 crore, and will primarily be backed by domestic investors.
Zepto said the new capital will be added to its existing cash reserves of Rs 5,681 crore, while reiterating that it remained debt-free as of 31 March 2026. The transaction is also expected to increase Indian ownership in the company from around 40 per cent currently.
The Times of India report added that Zepto is looking to raise about Rs 1,000 crore through the pre-IPO round and may reduce the size of its proposed fresh issue, originally planned at Rs 8,010 crore.
Founded by Aadit Palicha and Kaivalya Vohra, Zepto confidentially filed its IPO papers in December 2025. Its updated filing in June 2026 proposed a Rs 8,010 crore fresh issue alongside an offer for sale of 11.35 crore equity shares by existing investors. With fresh capital on the horizon and cash reserves already robust, the company appears to be choosing patience over pace as it prepares for its eventual stock market debut.
