Zepto Delays IPO, Plans $105 Million Pre-IPO Funding Round
Quick commerce firm Zepto has postponed its stock market debut until 2027 and plans to raise $105 million in a pre-IPO funding round to strengthen its balance sheet.
Quick commerce firm Zepto has once again put its plans for a stock market debut on hold. The company now intends to pursue a pre-IPO funding round to bolster its balance sheet before re-attempting a listing next year.
Zepto now aims to list on the stock exchange between February and May 2027. The startup will update its regulatory filings with recent financial data, adhering to timelines set by the Securities and Exchange Board of India (SEBI).
The decision to defer comes after significant pushback from institutional investors. These investors value Zepto at approximately $2.5 billion to $3 billion, a sharp downgrade from its previous valuation of $7 billion. Concerns remain over the company's high cash burn and premium valuation.
Despite nearly doubling its operating revenue to ₹22,624 crore in FY26, Zepto's net loss widened to ₹5,095 crore. Fierce competition in the quick commerce space necessitates heavy capital investment in dark store expansion and discounting, leading to a quarterly cash burn of ₹700 crore. The company faces the challenge of narrowing losses and bridging the valuation gap before its planned 2027 IPO.