Quick commerce startup Zepto has started discussions with investors to launch its initial public offering (IPO) at a significantly reduced valuation of around $3 billion (approximately ₹29,000 crore), according to a report by Financial Express.
The proposed valuation is less than half of the $7 billion valuation the company achieved during its last funding round just nine months ago. The sharp reduction comes after domestic institutional investors raised concerns over the pricing expectations initially set by the company.
Zepto is now targeting a pre-money valuation of about $2.5 billion (around ₹24,000 crore) for the IPO. At this valuation, the company is expected to raise nearly ₹5,000 crore through a primary share sale, along with a smaller offer-for-sale (OFS) component by existing investors.
The IPO structure is still being finalised based on investor feedback. The anchor investor portion is expected to be around ₹2,300 crore, while institutional investors may contribute nearly ₹1,530 crore.
The high-net-worth individual segment could account for around ₹766 crore, with the retail portion estimated at ₹511 crore.
Led by co-founder and CEO Aadit Palicha, Zepto received approval from the Securities and Exchange Board of India (Sebi) for its IPO earlier this year.
The company had last raised $450 million in October 2025 from investors, including CalPERS, at a valuation of $7 billion.
The proposed IPO size is also smaller than the plan outlined in Zepto’s updated draft red herring prospectus. The earlier filing had proposed a fresh issue of up to ₹8,010 crore along with an OFS component involving existing investors.
The valuation dispute emerged after mutual funds and insurance companies sought a lower pricing range, reportedly asking for a 30-40% reduction from the $4-5 billion valuation range that Zepto had considered.
A key point of disagreement has been the comparison with listed companies such as Eternal and Swiggy.
While Zepto wanted to benchmark itself against these firms, investors argued that the comparison was not suitable because those companies have food delivery businesses, whereas Zepto focuses solely on quick commerce.
Investor caution has also increased following weak performances by some recent technology IPOs. Bankers and existing investors are now working to narrow the valuation gap and attract commitments from institutional investors, high-net-worth individuals and family offices.
