Zepto will defer its public listing by two to three quarters, co-founder and CEO Aadit Palicha told employees in a town hall on Friday, according to Business-Today. The quick-commerce startup, which was initially eyeing a listing around July, has stalled the process after getting a tepid response from investors over valuation, people familiar with the matter said.
Listing Timeline Slips
Palicha said the company should be able to get listed in two to three quarters, and refiling will not be needed because the firm has approvals to list until November next year, a person aware of the townhall discussions told Business-Today.
The company should be able to get listed in 2-3 quarters. Refiling will not be needed as the firm has approvals to list till Nov next year.
The revised timeline pushes Zepto's public market debut beyond the July window the company had originally targeted. The delay follows a tepid response from investors over valuation, according to Business-Today.
Valuation Repricing
Domestic investors are valuing Zepto at around $3–3.5 billion, over 50% lower than its last valuation of $7 billion, at which it raised $450 million in funding in October last year, according to Business-Today. The company is aiming for a pre-IPO investment at a lower valuation of around $4–4.5 billion, with the objective of securing backing from domestic investors, a person aware of the discussions said.
| Metric | Value |
|---|---|
| Last funding round valuation (October last year) | $7 billion |
| Capital raised in that round | $450 million |
| Domestic investor valuation range | $3–3.5 billion |
| Target valuation for pre-IPO round | $4–4.5 billion |
| Pre-IPO funding sought | Rs 1,000 crore (~$105 million) |
| IPO issue size originally targeted | Up to Rs 8,010 crore |
The reported domestic valuation range represents a decline of more than 50% from the October 2025 round, according to Business-Today. Zepto's pre-IPO round target of $4–4.5 billion sits between those two figures, based on the report.
Pre-IPO Round and Issue Size
The startup is looking to raise about Rs 1,000 crore (around $105 million) in pre-IPO funding for now, TOI had reported on Friday, as cited by Business-Today. The idea is to get backing from domestic investors, said a person aware of the discussions. Zepto is also likely to trim the issue size originally targeted at up to Rs 8,010 crore through a fresh issue of shares, the report said.
A smaller issue size would reduce the amount of equity Zepto needs to sell in its public debut, based on the reduction from the originally targeted Rs 8,010 crore, according to Business-Today.
Implications for Investors
For finance executives tracking Indian capital markets, the Zepto delay is a data point on private-market repricing in the quick-commerce sector. The company's last funding round in October 2025 raised $450 million at a $7 billion valuation; domestic investors now apply a range of $3–3.5 billion, a cut of more than 50%, according to Business-Today. The pre-IPO round at $4–4.5 billion stands between those valuations, based on the report.
Zepto's approvals to list remain valid until November next year, and the company expects a listing in two to three quarters, according to the person aware of the townhall discussions. The plan is to get backing from domestic investors for the pre-IPO round, the person said.
Sources:
