Zepto plans pre-IPO funding round to strengthen balance sheet
What's the story
Zepto, a leading player in the quick commerce industry, has announced its plan to conduct a pre-IPO private placement. The move comes as part of the company's strategy to bolster its balance sheet ahead of an anticipated public listing. The new funding will supplement Zepto's existing cash reserve of ₹5,681 crore and zero debt as of March 31, 2026.
Business strategy
Prioritizing business execution over IPO terms
Despite receiving terms from public market investors for its IPO, Zepto has decided to focus on business execution at this stage.
The company said it would update its Draft Red Herring Prospectus (DRHP) with operating results and financials in the coming quarters.
It also plans to list within SEBI's approved timeframe under its approved UDRHP.
Valuation insights
Fundraising at reduced valuation for Zepto
Zepto is looking to raise funds at a valuation of around $4.5 billion (approximately ₹42,925 crore).
The capital infusion will be led mainly by domestic investors to increase Indian shareholding in the company, which currently stands at around 40%.
This valuation is lower than the $7 billion valuation it commanded in October 2025 when it raised $450 million in a round led by California Public Employees's Retirement System (CalPERS).
IPO details
Details of Zepto's IPO and financial performance
Zepto filed its preliminary IPO papers in December 2025 through the confidential pre-filing route.
In June 2026, the company updated its draft papers, revealing plans to raise ₹8,010 crore through a fresh issue of shares and an offer for sale (OFS) of 11.35 crore equity shares by existing shareholders.
For FY26, Zepto reported revenue from operations of ₹22,624 crore with an average of 17.5 lakh orders processed daily during the year.