Zepto IPO Update: Company May Delay Public Issue, Plans ₹1,000 Crore Fundraise

Quick commerce company Zepto is likely to put its Initial Public Offering (IPO) plans on hold and instead raise around ₹1,000 crore from its existing investors, according to a CNBC-TV18 report citing sources. The development comes amid differences over the company's valuation with domestic mutual funds and insurance companies. 

The domestic institutional investors sought a significantly lower valuation than what Zepto had expected ahead of its proposed public issue, prompting the company to explore an alternative funding route. 

Why Is Zepto Likely Delay Its IPO? 

According to CNBC-TV18, Zepto had lowered its valuation expectations to around $4 billion-$5 billion ahead of the IPO. However, domestic mutual funds and insurers reportedly bid at a pre-money valuation of $3.5 billion-$4 billion, around 30%-40% lower than the company's expectations. 

The report added that investors were unwilling to compare Zepto with listed companies such as Eternal and Swiggy, arguing that Zepto operates only in the quick commerce segment and does not have a food delivery business. 

Investor sentiment has also been influenced by the post-listing performance of Swiggy, whose share price has traded below its IPO price. 

₹1,000 Crore Fundraise Planned 

According to CNBC-TV18, Zepto is now in discussions with its existing investors to raise around ₹1,000 crore, instead of proceeding immediately with the IPO. 

The proposed fundraise is significantly smaller than the ₹8,010 crore fresh issue planned under the IPO and is intended to provide additional capital while the company reassesses its listing timeline. 

Read More: Zepto to Launch ‘Select’ Premium Grocery Service, Report Says 

About Zepto IPO 

Zepto received SEBI's observation letter on May 8, 2026, and filed an updated draft red herring prospectus (DRHP) in June. 

The proposed IPO comprised: 

If the IPO is launched after September 30, 2026, the company may need to update its offer document with its first-half FY27 financial results, as SEBI regulations require audited financial statements in the offer document to be no more than six months old at the time of issue opening. 

Zepto FY26 Financial Performance 

The company has appointed Morgan Stanley, Goldman Sachs, Axis Capital, HSBC, JM Financial, IIFL Securities and Motilal Oswal as the book-running lead managers for the proposed IPO. 

Conclusion 

According to CNBC-TV18, Zepto is considering delaying its IPO and raising around ₹1,000 crore from existing investors after domestic institutional investors sought a lower valuation. While the company has already received SEBI's observations for its IPO, its listing timeline may depend on valuation discussions and regulatory timelines. 

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