Zepto pauses IPO amid mutual funds push, seeks 1,000cr+ pre-IPO

Business Jul 30, 2026

Zepto, the quick commerce startup, is hitting pause on its IPO plans after mutual funds pushed for tough terms.

Instead, it's looking to raise over ₹1,000 crore ($105 million) in a pre-IPO round with help from existing investors like Glade Brook and Nexus Venture Partners.

The move gives Zepto some breathing room to strengthen its finances before heading back to the public markets.

Zepto valuation set at $4B-$4.2B

Securities and Exchange Board of India (SEBI) rules mean only 20% of fresh shares can be sold in pre-IPO placements.

Zepto's IPO size is dropping from ₹8,000 crore to about ₹5,000 to ₹6,000 crore.

The company's valuation for this round is set at $4 billion to $4.2 billion (down from $5 billion) after mutual funds flagged worries over high cash burn.