Zepto's shares take a hit as quick-commerce firm delays IPO
What's the story
Zepto's unlisted shares have witnessed a massive 23% decline in the last five trading sessions. The fall comes after the quick-commerce company decided to postpone its planned initial public offering (IPO) and instead go for a smaller pre-IPO fundraising. The gray market now indicates a valuation of less than $3.5 billion for Zepto, according to Moneycontrol.
Market response
Unlisted shares of Zepto have fallen sharply
In the unlisted market, Zepto's shares have fallen from around ₹35 to ₹27 per share over the last week.
The decline is significant considering that just a month ago, these stocks were trading at approximately ₹38 each.
At its peak in December 2025, unlisted shares traded at nearly ₹68 before easing to around ₹62 in January 2026.
Valuation drop
Implied valuation of Zepto drops significantly
The current wholesale price of ₹27 per share translates to a market capitalization of roughly ₹34,000 crore or $3.6 billion for Zepto.
This is a far cry from the implied valuation of about $5 billion when the stock traded at ₹38 last month.
The revised fundraising comes after a widening gap emerged between what existing shareholders were seeking and what institutional investors were prepared to pay.
Fundraising details
Revised fundraising strategy and investor participation
Zepto is now looking to raise around ₹1,000 crore at a valuation of some $4.5 billion through its revised fundraising strategy.
Existing investors such as Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners are likely to participate in this round.
The decision comes amid a growing disconnect between the company's valuation expectations and those of domestic institutional investors who were comfortable with valuations between $2.5 billion-$3 billion.
Financials
Zepto's financial performance amid valuation concerns
Despite the valuation debate, Zepto has shown strong operating growth. The company's revenue from operations more than doubled to ₹22,623.58 crore in FY26 from ₹11,109.95 crore a year ago.
However, its net loss widened to ₹5,905.19 crore from ₹4,699.71 crore during the same period.
Analysts have noted that while Zepto leads in order density and expansion speed within the industry, it also incurs significantly higher operating losses compared to competitors like Blinkit which are near break-even economics.