Archive · 27 Jul 2026
Zepto Cuts IPO Valuation Amid Investor Resistance
Zepto, a company that delivers groceries and other essentials quickly, is planning to go public but has had to lower its expected value by half.
Initially, they thought they were worth about $7 billion, but investors disagreed and now they are aiming for around $3 billion.
This change is because investors think Zepto's business, which doesn't include food delivery like some of its competitors, shouldn't be valued as highly.
Zepto hopes to raise about Rs 5,000 crore from this IPO, with different portions allocated to various types of investors.
The final details will depend on feedback from investors.
Zepto is planning an IPO with a post-money valuation of about $3 billion, down from $7 billion nine months ago.
Investor resistance led to the valuation reset, with domestic institutional investors seeking a lower valuation.
Zepto aims to raise Rs 5,000 crore through a primary issue, with various portions allocated to different investor segments.
The company received Sebi approval for its IPO in April and last raised $450 million in October 2025.
Investors argue that Zepto's valuation should not be compared to peers like Swiggy due to differences in business models.
- Who
- Zepto, a quick commerce firm led by co-founder and CEO Aadit Palicha
- What
- Zepto is halving its IPO valuation to around $3 billion due to investor pushback
- When
- The company last raised funds in October 2025 and received Sebi approval in April 2024
- Where
- The IPO discussions are taking place in India
- Why
- Large domestic institutional investors resisted the initial pricing, seeking a lower valuation
Zepto's Valuation Expectations
Investors' Valuation Concerns
Valuation Benchmark
Zepto's Valuation Expectations
Zepto wants its IPO valued in line with listed peers Eternal and Swiggy, which include food delivery in their business models.
Investors' Valuation Concerns
Investors argue that the comparison is inappropriate because Zepto does not operate a food delivery business, which significantly impacts revenue and market valuations.
Valuation Range
Zepto's Valuation Expectations
Zepto initially sought a valuation in the $4-5 billion range, a significant markdown from its $7 billion peak.
Investors' Valuation Concerns
Investors pushed for a valuation 30-40% lower than the $4-5 billion range, leading to a reset to around $3 billion.
- Current Valuation
- $3 billion (Rs 29,000 crore)
- Previous Valuation
- $7 billion (Rs 60,000 crore)
- Targeted Fundraising
- Rs 5,000 crore
- Anchor Book
- Rs 2,300 crore
- Institutional Portion
- Rs 1,530 crore
- HNI Segment
- Rs 766 crore
- Retail Portion
- Rs 511 crore
- Last Funding Round
- $450 million in October 2025
- Sebi Approval
- April 2024
- Proposed Fresh Issue
- Up to Rs 8,010 crore
- Offer for Sale
- Up to 113.47 million shares