Quick Commerce Startup Reportedly Delays Public Listing Amid Valuation Discussions with Investors
Quick commerce unicorn Zepto has reportedly postponed its Initial Public Offering (IPO) as it continues valuation discussions with investors. According to multiple media reports, the Bengaluru-based startup is now exploring a pre-IPO funding round of more than ₹1,000 crore (around $105 million) before proceeding with its public market debut.
The proposed funding is expected to come from several existing investors, including Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners, according to a report by Moneycontrol.
The move suggests that Zepto is taking additional time to strengthen its financial position and optimize its valuation before entering the public markets.
Pre-IPO Round Could Exceed ₹1,000 Crore
Under the proposed transaction, Zepto may raise over ₹1,000 crore through a pre-IPO placement with existing shareholders.
According to SEBI regulations, companies preparing for an IPO are permitted to raise up to 20% of the proposed fresh issue through a pre-IPO placement. The capital raised through this route is adjusted against the fresh issue portion of the IPO.
Such fundraising allows companies to secure additional capital while providing investors with an opportunity to participate before the public listing.
If completed, the funding round would further strengthen Zepto’s balance sheet ahead of its eventual IPO.
IPO Size Also Reportedly Revised
Zepto had initially planned to raise approximately ₹8,000 crore through its public offering.
In June, the company filed its updated Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), proposing a fresh issue of ₹8,010 crore.
The company reportedly received regulatory approval around a month later.
However, recent reports suggest that the IPO size has now been reduced to approximately ₹5,000–6,000 crore, indicating a possible recalibration of fundraising plans in line with prevailing market conditions and investor sentiment.
The company has not officially announced a revised listing timeline.
Revenue Doubles in FY26
Despite delaying its IPO, Zepto continued to deliver strong top-line growth during FY26.
The company reported operating revenue of ₹11,110 crore, more than doubling from ₹5,454 crore in FY25.
The sharp increase reflects continued growth in India’s quick commerce market, where consumers increasingly rely on ultra-fast delivery services for groceries and daily essentials.
Zepto has expanded rapidly across major Indian cities, strengthening its dark store network and delivery infrastructure to meet rising demand.
Losses Continue to Rise
While revenue growth remained strong, profitability continues to be a challenge.
According to its financial disclosures, Zepto’s net loss increased 26% to ₹5,905 crore in FY26, making it one of India’s largest loss-making startups.
The widening losses highlight the significant investments required to scale quick commerce businesses, including:
- Expansion of dark stores.
- Customer acquisition.
- Logistics infrastructure.
- Technology investments.
- Delivery operations.
Like several players in the quick commerce sector, Zepto continues to prioritise market expansion and customer growth over near-term profitability.
Strong Balance Sheet Supports Growth
As of the end of FY26, Zepto reported current assets of ₹9,638 crore.
This included approximately ₹973 crore in cash and bank balances, providing the company with liquidity to support ongoing expansion and operational requirements.
The proposed pre-IPO funding could further strengthen its financial position while providing flexibility ahead of its eventual public listing.
Maintaining a healthy balance sheet will be particularly important as competition intensifies across India’s quick commerce sector.
India’s Quick Commerce Race Heats Up
Zepto operates in one of India’s fastest-growing digital commerce segments, competing with major players such as:
The sector has witnessed aggressive investments in logistics, technology, and rapid delivery infrastructure as companies compete to improve customer experience and expand market share.
Despite rising competition, investors continue to view quick commerce as one of India’s most promising consumer internet categories.
Outlook
Zepto’s reported decision to postpone its IPO reflects a strategic approach to timing its public market debut amid ongoing valuation discussions.
A successful pre-IPO funding round could strengthen investor confidence, improve financial flexibility, and provide additional capital for expansion before listing.
With strong revenue growth, a rapidly expanding customer base, and continued investor backing, Zepto remains one of India’s most closely watched startup IPO candidates, even as it works toward improving its path to profitability.
