Zepto Reportedly Plans 20% IPO Cut Despite $3.5–4 Billion Investor Valuation
Zepto is likely to trim the size of its IPO by 20% to $650-700 million after investors’ reaction suggested the quick-commerce startup’s valuation at $3.5-4 billion, down from the earlier $7 billion estimate, sources said.
There has been talk of a possible 20% reduction in the size of Zepto's first public offering (IPO). Consequently, instead of the $850 million (INR 8,010 crore) intended, the new capital raised was closer to $650–700 million.
According to a report in the media, the decision is made in response to intense criticism from investors in the capital market on the company's projected much lower valuation of $3.5-4 billion pre-money. At its peak valuation of $7 billion in October 2025, Zepto had raised $450 million in funding, with US pension fund Calpers serving as the round's lead investor.
Why Zepto is Pushing for IPO’s Restructuring?
In the following week or so, the business should reveal its pricing range. Companies are obligated to resubmit their draft prospectus in accordance with the regulations set forth by the SEBI in the event that the issue size deviates from the initial estimate by more than 20%. Domestic mutual funds have allegedly been actively seeking a price rationalisation, according to a media report. Domestic institutional investors are allocated around 40% of the anchor book in accordance with SEBI regulations.
It is believed that local investors pushed for a revaluation of Zepto due to the company's increasing cash burn and the general instability of the market. SEBI gave its clearance to Zepto's confidential December 2025 IPO filing in May. Following this, it submitted a revised red herring prospectus for a capital raising of INR 8,010 crore (about $850 million), with new funding making up the bulk of the offering.
Nexus Venture Partners and other investors are selling a modest part in the issuance through the offer-for-sale component. In the face of fiercer competition in the online shopping space, Zpeto is taking advantage of public markets. In June, a media business indicated that Zepto's aggressive pricing policy was hurting monetisation, even though it was second only in order numbers to Blinkit, which is owned by Eternal.
Financial Outlook of Zepto
Compared to Swiggy's Instamart's loss of INR 3,500 crore and Blinkit's loss of INR 277 crore, Zepto's adjusted Ebitda loss was filed confidentially for its IPO. Amazon, Flipkart, BigBasket (supported by Tata Digital), and JioMart (owned by Reliance Retail) are among the other competitors in this space. According to the draft prospectus, Zepto's cash balance was INR 5,681 crore as of March 31, 2018.
According to brokerages, this highlights the necessity for the corporation to seek new funding. This led it to proceed with the initial public offering (IPO) at a lower valuation than initially anticipated. Zepto, which launched in 2021, has investors including General Catalyst, Glade Brook, Motilal Oswal, Lightspeed, and Nexus Venture Partners.
