Zepto Pauses IPO Amid Valuation Concerns, Plans Pre-IPO Funding Round

Zepto, a quick commerce startup based in India, has reportedly halted its initial public offering (IPO) plans. The company is now focusing on raising approximately ₹1,000 crore (around $105 million) through a pre-IPO funding round, a move attributed to disagreements over its valuation.

Sources indicate that Zepto was in negotiations with institutional investors regarding its IPO valuation. However, investors reportedly valued the startup significantly lower than its expectations, between $2.5 billion and $3 billion. This figure is substantially below the company’s earlier expectations and less than half of its $7 billion private market valuation achieved in October 2025.

The pre-IPO round is expected to primarily involve domestic investors. However, existing investors, including Glade Brook and General Catalyst, may also participate. Under current regulations, companies can raise up to 20% of their proposed fresh issue through a pre-IPO placement, with the amount deducted from the subsequent IPO.

The company operates in a highly competitive quick commerce market, facing rivals such as Blinkit, Swiggy Instamart, and the quick commerce arms of Amazon and Flipkart. All these players are investing heavily in infrastructure, discounts, and customer acquisition. Zepto’s net loss widened in the last fiscal year, even as its operating revenue nearly doubled.

This development places Zepto among a growing number of new-age technology companies that have delayed their IPO timelines this year. Factors such as market conditions and valuation concerns have led other companies, like Curefoods and PhonePe, to postpone their public listings.