Archive · 2 Aug 2026
Mutual Funds Push Back on Zepto IPO, Slashing Valuation
Zepto, a quick-commerce company, wanted to sell shares in a big IPO, hoping to raise about $7 billion.
Mutual fund managers, who help decide how much a company should be worth, said that was too high.
They lowered the target to about $3 billion.
Because of this, Zepto decided to wait before going public.
In the past year, more than 13% of mutual funds voted against company decisions, up from just 2.5% five years ago.
Some newer fund companies like Groww and Zerodha are more outspoken, while the biggest ones like SBI MF and ICICI Prudential MF vote against fewer decisions.
Investors are worried because many quick-commerce companies are fighting for customers, making it hard to decide how much each should be worth.
Zepto cut its IPO valuation from $7B to $3B after fund managers’ skepticism.
Mutual fund dissent rose to 13.1% in the year ended March 2026, up from 2.5% five years earlier.
Competition from Blinkit, Swiggy Instamart, and others made investors wary of high valuations.
Largest fund houses (SBI MF, ICICI Prudential MF, Aditya Birla Sun Life MF) have dissent rates below 4%.
Newer entrants (Groww, Angel One, Navi, Zerodha) oppose about 30% of corporate resolutions.
- Who
- Mutual fund managers, Zepto, investors
- What
- Zepto's IPO valuation cut and increased mutual fund dissent
- When
- Year ended March 2026; 2025-2026 market period
- Where
- India
- Why
- Competition, market uncertainty, and lack of margin of safety
- Company
- Zepto
- Initial Valuation
- $7B
- Revised Valuation
- $3B
- Mutual Fund Dissent Rate
- 13.1%
- Largest Fund Houses
- SBI MF, ICICI Prudential MF, Aditya Birla Sun Life MF