Archive · 30 Jul 2026
Zepto pauses IPO, seeks Rs 1,000 crore pre‑IPO funding
Zepto is a company that sells groceries and other everyday items quickly.
It wanted to sell shares to the public (an IPO) but investors said the price was too high.
So Zepto decided to raise money from its current investors instead, asking for more than Rs 1,000 crore.
The company still wants to go public later, but it needs to finish this new funding before August 21.
Investors were worried because Zepto spends a lot of money each quarter and hasn’t made a profit yet.
Zepto has halted its IPO after investors rejected its $4‑4.2 B valuation.
The company plans a pre‑IPO raise of over Rs 1,000 crore ($105 M) at the same valuation.
Domestic mutual funds were willing to value Zepto at only $2.5‑3 B, citing high cash burn.
Zepto’s quarterly cash burn fell from >Rs 900 crore to ~Rs 700 crore, extending runway to ~5 quarters.
The pre‑IPO placement must be completed before the draft offer document expires on Aug 21.
- Who
- Zepto, a quick‑commerce firm
- What
- paused its IPO and is raising pre‑IPO capital
- When
- decision announced now; pre‑IPO must be completed before August 21
- Where
- India
- Why
- investors rejected the $4‑4.2 B valuation due to high cash burn and lack of profitability
- Company
- Zepto
- Valuation sought
- $4-4.2 billion
- Pre‑IPO amount
- Rs 1,000 crore ($105 million)
- Cash burn
- Rs 700 crore per quarter
- Draft offer expiry
- August 21