Zepto Eyes IPO Launch as it Courts Anchor Investors for Share Sale
Zepto is talking to anchor investors ahead of its IPO to improve market interest, and has set a revised post-money valuation of about $3 billion. The proposed offering will have a primary issue of INR 5,000 crore and an offer-for-sale component of a limited size.
Investors and fast-moving marketplace Zepto has started talking about a new, more realistic post-money initial public offering (IPO) valuation of about $3 billion (INR 29,000 crore). It should be noted that no final decision has been made.
Around $2.5 billion (INR 24,000 crore) was the targeted pre-money valuation for the issuance. On July 27, talks started between the company and the investors, and they are anticipated to keep going this week. There has been no final decision on the valuation or deal structure yet because the bids are still due.
Proposed IPO Structure of Zepto if Deal Goes Through
A planned primary issuance of about INR 5,000 crore and a tiny secondary component would make up the IPO structure if the book were based on the proposed revised IPO valuation levels. Various new investor talks were reportedly part of "soft checks", according to media reports. Moreover, Zepto's leadership, including CEO and co-founder Aadit Palicha, will refine their strategies in response to input from investors.
After receiving the green light from SEBI for its initial public offering (IPO) in April, Zepto raised $450 million from US CALPERS and others in October 2025, valuing the company at $7 billion. The market regulator SEBI received an amended draught red herring prospectus last month from Zepto. This initial public offering (IPO) includes both a new issuance of equity shares up to INR 8,010 crore and an OFS of up to 113.47 million shares by current investors.
Zepto User Base Falls for the First Time
Zepto, a rapid e-commerce platform, saw its user base fall for the first time in the quarter ending in March. In the December 2025 quarter, there were 49.54 million Zepto users; in March 2026, that number dropped to 47.97 million. Despite massive advertising expenditure and an overall increase in marketing expenditure in absolute terms every year, there has been a noticeable decline in active users.
Although there was a reduction in the mentioned quarterly statistics, the user base data (ATU) saw a 25% year-on-year increase. In the full fiscal year 2025-26, Zepto recorded a loss of INR 5,905.19 crore, an increase over the previous fiscal year's loss of INR 4,699.71 crore.
The company's operational income more than quadrupled from INR 11,109.94 crore in FY25 to INR 22,623.58 crore in FY26, despite growing yearly losses. After a loss of INR 1,831.91 crore in Q4 FY25, Zepto was able to reduce it to INR 1,538.67 crore for the quarter ending March 31, 2026. The financial facts were revealed in the revised red herring prospectus that the Bengaluru-based company submitted to SEBI in order to solicit INR 8,010 crore through a new share offering (IPO).
