Quick Take
- Zepto weighs cutting its IPO to $650-700 Mn (Rs 6,266-6,748 Cr) fresh capital, down from $850 Mn.
- Capital market investors want a $3.5-4 Bn pre-money valuation, roughly half its $7 Bn private mark.
- Price band expected within seven to eight days, with a refiling needed if size drops over 20%.
In This Article
Quick commerce firm Zepto is considering trimming its Zepto IPO size by about 20%, targeting $650-700 Mn (Rs 6,266-6,748 Cr) in fresh capital against the originally planned $850 Mn (Rs 8,010 Cr), people with knowledge of the matter said in July 2026.
The revision follows strong pushback from capital market investors on the Bengaluru-based company’s valuation. Buyers now peg the firm at $3.5-4 Bn pre-money, sharply below its $7 Bn private round valuation from October 2025. The company is expected to announce its price band over the next seven to eight days.
StartupFeed Insight
The real story is not the discount, it is who set the price. Domestic mutual funds now hold roughly 40% of the anchor book under SEBI norms, so they, not global crossover funds, decide what quick commerce is worth in India. That shift explains a 45% haircut on a business whose revenue doubled. Founders planning 2027 listings should watch this closely: the private-to-public valuation bridge is now built by Indian institutions that price on per-order economics, not growth multiples. StartupFeed expects at least two more India consumer-tech IPOs to reprice downward before March 2027. By Avinash.
Zepto IPO Size: The Revised Numbers
The Zepto IPO size refers to the total capital the company seeks to raise through its initial public offering (IPO), combining a fresh issue with an offer-for-sale (OFS) component. Zepto filed confidentially with the Securities and Exchange Board of India (SEBI) in December 2025 and received approval in May 2026, according to filings with the Securities and Exchange Board of India.
| Metric | Detail | Notes |
|---|---|---|
| Revised fresh capital | $650-700 Mn (Rs 6,266-6,748 Cr) | Down about 20% from plan |
| Original fresh issue | $850 Mn (Rs 8,010 Cr) | Per updated DRHP |
| Expected pre-money valuation | $3.5-4 Bn (Rs 33,740-38,560 Cr) | Investor feedback |
| Last private valuation | $7 Bn (Rs 67,480 Cr) | October 2025, CalPERS-led |
| OFS component | 11.35 Cr equity shares | Nexus among sellers |
| SEBI approval | May 2026 | Filed confidentially Dec 2025 |
One detail carries real weight. SEBI rules require companies to refile their draft prospectus if the issue size changes by more than 20% from the original estimate, which places Zepto right at the threshold. A cut of exactly 20% avoids a refiling and the delay that follows.
About Zepto
Zepto is an Indian quick commerce platform delivering groceries and household essentials in under 10 minutes. Founded in 2021 by Stanford dropouts Aadit Palicha and Kaivalya Vohra, the company operates from Bengaluru through 1,139 dark stores as of March 2026, serving 4.8 Cr annual transacting users. Key investors include Nexus Venture Partners, Lightspeed, General Catalyst, StepStone and CalPERS.
How does the Zepto IPO valuation compare?
The Zepto IPO valuation of $3.5-4 Bn (Rs 33,740-38,560 Cr) marks a 43-50% discount to the $7 Bn the company commanded in its last private round. That October 2025 round raised $450 Mn (Rs 4,338 Cr) and was led by the California Public Employees’ Retirement System (CalPERS), the largest US public pension fund.
“Domestic mutual funds have been pushing hard for rationalised pricing, around 40% of the anchor book is reserved for domestic institutional investors as per Sebi norms,” said one of the persons who did not wish to be identified.
The gap reflects a wider reset. Public market buyers price loss-making consumer platforms on unit economics and cash generation, not forward growth. Zepto’s financials show why they hesitate. The company posted a net loss of Rs 5,905 Cr in FY26, up 26% from Rs 4,695 Cr in FY25, even as operating revenue more than doubled to Rs 22,623 Cr from Rs 11,110 Cr, per its updated Draft Red Herring Prospectus (DRHP, filed with SEBI before an IPO).
Why are domestic investors pushing back?
Domestic institutional buyers are resisting the original Zepto IPO size because of market volatility and the company’s mounting cash burn. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) loss widened 11.5% to Rs 5,041.5 Cr in FY26 from Rs 4,521.7 Cr in FY25, according to the updated DRHP.
The per-order picture reads better. Zepto lost Rs 78.75 per order on an adjusted EBITDA basis in FY26, improving from Rs 136.15 in FY25. In Q4 FY26 the figure fell further to Rs 59.4 per order, per the DRHP.
Advertising gives the strongest signal. Ad revenue reached Rs 1,636 Cr in FY26, up from Rs 651 Cr in FY25 and Rs 49 Cr in FY24, and now equals 7.8% of net receivables value. Analysts treat that line as the clearest route to profit, since margins on advertising far exceed margins on groceries. Zepto also disclosed an Enforcement Directorate summons dated April 8, 2026 to both founders under the Foreign Exchange Management Act, 1999, a risk factor institutional buyers weigh heavily.
How does Zepto stack up against Blinkit and Instamart?
Zepto trails only Eternal-owned Blinkit in quick commerce order volume, with Swiggy Instamart the third major player. The comparison below uses the latest disclosed figures.
| Player | Listing status | Scale marker |
|---|---|---|
| Blinkit (Eternal) | Listed 2021 | Leads sector order volume |
| Zepto | IPO pending | 1,139 stores, 23.3 Lakh daily orders |
| Instamart (Swiggy) | Listed Nov 2024 | Third by volume |
What separates Zepto is speed of growth against depth of loss. Its order volume grew at a compound annual rate near 119.5% between FY24 and FY26, faster than the sector, but analysts have flagged its aggressive pricing as coming at the expense of monetisation. Zepto would become the first pure-play quick commerce company to list on Indian exchanges.
What’s Next
Zepto is expected to announce its price band within seven to eight days, which will fix the final Zepto IPO size and confirm whether the cut stays under the 20% refiling threshold. A listing in the July to September 2026 window remains on the table. The price band will tell the market whether Indian institutions have permanently reset how quick commerce gets valued. Will public investors reward the improving per-order numbers, or hold out for profit?
Frequently Asked Questions
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Avinash. Have a tip? Write to us at editorial@startupfeed.in.
