The recalibration comes as Zepto seeks to bridge the gap between its private market valuation and public market expectations, where investors have remained cautious on richly valued technology IPOs
Quick commerce firm Zepto has cut the size of its proposed initial public offering (IPO) by around half and is negotiating a lower valuation with investors as discussions for its anchor book continue, according to people familiar with the matter.The company is currently discussing an IPO valuation of around $2.5-3 billion, significantly lower than the $7 billion valuation at which it raised $450 million from investors led by CalPERS in October 2025. The revised valuation is also below the $3.5-4 billion pre-money valuation that was under discussion earlier, the people said.The IPO size, earlier proposed at ₹5,106 crore — comprising a ₹5,000-crore fresh issue and a ₹106-crore offer for sale (OFS) — has been cut by nearly half, although the final issue size and pricing are still being negotiated.Under the earlier structure, the company had proposed an anchor allocation of ₹2,298 crore, with the remaining issue split into a ₹1,532-crore institutional book, ₹766 crore for high-net-worth investors, and ₹511 crore for retail investors.Valuation resetThe recalibration comes as Zepto seeks to bridge the gap between its private market valuation and public market expectations, where investors have remained cautious on richly valued technology IPOs.The company received the Securities and Exchange Board of India’s (SEBI) approval for its IPO in April. Its draft papers remain valid until August 21. However, people familiar with the matter said that Zepto has the option of refiling its draft papers with updated financial statements, which would extend the validity of the IPO window until the end of October if discussions on valuation require more time.To support its valuation, the company has been highlighting its recent operating performance to investors. Zepto has pitched 23 per cent sequential growth in the June quarter, lower cash burn, and a roadmap to operating breakeven by FY28 and profitability by FY29, the people said.Financially, the company has continued to scale rapidly. Revenue from operations more than doubled to ₹22,623.58 crore in FY26 from ₹11,109.94 crore in FY25. However, its net loss widened to ₹5,905.19 crore from ₹4,699.71 crore during the same period, reflecting continued investments in expansion amid intense competition in quick commerce.The company competes with Blinkit and Swiggy Instamart in India’s rapidly expanding quick commerce market.Published on July 29, 2026
