Zepto Pauses IPO to Pursue $105 Million Pre-IPO Round

Quick commerce startup Zepto has paused its initial public offering plans after failing to align its valuation expectations with those of institutional investors. The company initially sought a listing with a proposed issue size of approximately Rs 8,000 crore, but domestic mutual funds—including SBI MF and HDFC—proposed valuations between $2.5 billion and $3 billion. This marked a steep decline from the company's $7 billion valuation in October 2025.

Institutional investors cited concerns over high cash burn, which previously exceeded Rs 900 crore per quarter, and intensifying competition from rivals such as Amazon, Flipkart, and Blinkit. To address these challenges, Zepto scaled down its expected issue size to Rs 5,000–6,000 crore before ultimately deferring the public listing to improve its profitability profile.

Zepto is now seeking approximately Rs 1,000 crore ($105 million) through a pre-IPO placement. This round targets a valuation between $4 billion and $4.5 billion and expects participation from existing backers, including Glade Brook Capital, General Catalyst, Goodwater Capital, and Nexus Venture Partners. The company intends to return to the public markets in the coming months once it demonstrates stronger financial metrics.