Zepto Mulls IPO Delay Amid Lower Investor Valuation Demands

Quick-commerce startup Zepto is reportedly considering delaying its public listing as negotiations with institutional investors point to a valuation significantly below its expectations. According to reports, the valuation under discussion is around $2.5 billion to $3 billion. Should institutional investors and Zepto fail to bridge the valuation gap, the startup is mulling deferring the IPO.

The reported valuation marks a sharp reset for Zepto. Earlier this month, foreign institutional investors were evaluating Zepto at a pre-money valuation of about $4.5 billion, implying a post-money valuation of around $5.1 billion. The current discussion of $2.5 billion to $3 billion is less than half its $7 billion private market valuation achieved after raising $450 million in October 2025.

Zepto has received formal price indications from large institutional investors and is in negotiations before deciding whether to proceed with the IPO. Its current draft prospectus remains valid until August 21. The company has not responded to queries regarding valuation and the IPO timeline.

This development occurs as investors scrutinize Zepto's cash burn and path to profitability amid intense competition in the quick commerce segment. Zepto competes with Eternal-owned Blinkit, Swiggy Instamart, and the quick commerce arms of e-commerce giants Amazon and Flipkart. Zepto’s net loss widened to ₹5,095 crore in FY26 from ₹4,697 crore in the previous year, even as operating revenue nearly doubled to ₹22,624 crore.

If Zepto defers the listing, it would join a growing list of new-age firms, including PhonePe, Flipkart, and Shiprocket, that have pushed back their IPO plans this year.