Zepto May Reduce IPO Size by 20% Amid Lower Valuation Expectations
Quick-commerce giant Zepto is reportedly considering trimming its proposed IPO size by approximately 20%, bringing the expected fundraise down from ~$850 million (₹8,010 crore) to $650–700 million, according to multiple reports citing sources familiar with the matter.
The recalibration comes after institutional investors pushed back on the company's valuation expectations. Foreign investors have indicated interest at a pre-money valuation of roughly $4.5 billion, while some domestic institutional investors are valuing the company between $3 billion and $3.5 billion — a sharp discount to Zepto's peak valuation of $7 billion, achieved during its October 2025 funding round led by US pension fund CalPERS.
Why the markdown?
The core concern is Zepto's path to profitability. While revenue from operations doubled to ₹22,624 crore in FY26 from ₹11,110 crore in FY25, net losses also widened 26% to ₹5,905 crore. Total expenditure surged 79% year-on-year to ₹29,027 crore, outpacing revenue growth. The company has posted negative free cash flow since inception, recording negative ₹4,330 crore in FY26.
The unit economics tell a more nuanced story though. Zepto's loss per order on an adjusted EBITDA basis improved to ₹59.4 in Q4 FY26, down from ₹142.68 in Q4 FY25 — a meaningful trajectory, but still firmly negative.
Scale isn't in question — sustainability is.
As of March 2026, Zepto operated over 1,139 dark stores across India, processing more than 1.75 million orders per day across a catalogue of 46,600+ products. Annual transacting users reached 4.79 crore, a 25% year-on-year increase.
But public market investors are applying a fundamentally different lens than private market backers. They are placing greater weight on earnings visibility, unit economics, and capital efficiency — and the competitive landscape adds pressure. Rival Blinkit posted FY26 revenue of ₹37,779 crore and reported positive EBITDA of ₹430 crore, setting a benchmark Zepto hasn't matched yet.
What happens next?
Zepto filed its updated DRHP(First DRHP filed December 26, 2025) with SEBI on June 8, 2026, after receiving SEBI's observation letter on May 8, 2026 for the first DRHP. The company is expected to reveal its pricing range in the coming weeks, with a listing anticipated in the July–September 2026 window.
Key investors include General Catalyst, Glade Brook, Motilal Oswal, Lightspeed, and Nexus Venture Partners, while Goldman Sachs and Morgan Stanley are among the lead banks for the IPO.
The bigger picture: This isn't just a Zepto story — it's a signal for India's broader startup IPO pipeline. The development reinforces a trend toward more measured IPO pricing and may set a benchmark for other consumer internet and quick-commerce companies planning to go public.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence before making any investment decisions.