- Zepto has deferred its IPO as institutional investors have valued the company at a pre-money valuation of around $2.5 billion and a post-money valuation of roughly $3 billion, significantly lower than its previous $7 billion valuation from a private funding round.
- CEO Aadit Palicha stated that the company has time until November 2027 to list, with a potential target window for the IPO now set between February and May 2027.
- On August 1, 2026, Zepto closed a pre-IPO private placement of over Rs 1,000 crore ($105 million), which will strengthen its balance sheet ahead of the IPO.
- In October 2025, Zepto raised $450 million in a funding round led by CalPERS and co-led by General Catalyst, achieving a valuation of $7 billion.
- Zepto confidentially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 27, 2025, and later filed an updated DRHP in June 2026 seeking to raise Rs 8,010 crore through a fresh issue.
- The DRHP cautioned that Zepto may continue to incur losses and may not sustain historical growth rates, with FY26 net cash used in operating activities reported at Rs 3,462 crore and free cash flow negative at Rs 4,330 crore.
- Zepto has reached 2.33 million daily orders and nearly 48 million annual transacting users, operating 1,139 dark stores across 66 cities, with mature dark stores running at 6-7 percent EBITDA margins.
- Zepto has diversified its offerings with Zepto Caf1, private labels, Zepto Atom, and Zepto Pharmacy, with advertising revenue rising significantly from Rs 49.2 crore in FY24 to Rs 1,635.7 crore in FY26.
- The situation with Zepto mirrors that of Honasa Consumer (Mamaearth), whose IPO valuation was repriced from about $3 billion at filing to roughly $1.2 billion at listing; Zepto has opted to defer its listing instead.
Zepto's IPO plans have been delayed as institutional investors have valued the company at $2.5–3 billion, a stark contrast to its previous $7 billion valuation. The startup, which filed its draft red herring prospectus in December 2025, initially aimed for an August 2026 listing.125
CEO Aadit Palicha confirmed that the company can wait until November 2027 for its public offering, with a new target window set between February and May 2027. This decision follows a pre-IPO private placement that raised over ₹1,000 crore ($105 million), bolstering its balance sheet to ₹5,681 crore in cash with no debt as of March 31, 2026.34
Despite significant revenue growth—from ₹4,455 crore in FY24 to ₹22,624 crore in FY26—the company has faced mounting losses, reporting ₹5,905.19 crore in FY26. Institutional investors have expressed skepticism about Zepto's valuation, arguing that its pure-play quick commerce model lacks the diversified revenue streams of competitors like Swiggy and Blinkit.
The company has also expanded its offerings, launching Zepto Café and Zepto Pharmacy, while daily order volumes have surged to 2.33 million with nearly 48 million annual transacting users as of March 2026. However, the lack of profitability remains a concern, with the company acknowledging the risks of sustaining growth amidst ongoing losses.1011
“Zepto's FY26 net cash used in operations was Rs 3,462 crore and free cash flow was negative Rs 4,330 crore. The company also raised over Rs 1,000 crore in a pre-IPO placement, and reports now target a February–May 2027 listing window.”
Forbes India
