Zepto Delays IPO, Seeks Private Funding Amid Valuation Concerns

Quick commerce startup Zepto has postponed its Initial Public Offering (IPO) plans for two quarters, choosing to raise fresh private capital from existing domestic investors instead. This decision follows an underwhelming response from large domestic mutual funds over its **$2.5-3 billion** valuation discussions.

Key Zepto IPO Figures

• IPO Postponement: **Two quarters**
• Discussed IPO Valuation: **$2.5-3 billion**
• Last Private Funding Round Valuation: **$7 billion** (October 2025)

CEO Aadit Palicha informed employees the company will now focus on reducing cash burn and driving growth. This strategy precedes any refiling of its prospectus.

Other IPO Developments

Consumer appliance manufacturer Atomberg Technologies has transitioned into a public company. The move precedes its planned **Rs 1,500-2,000 crore** IPO, with its draft red herring prospectus (DRHP) expected soon.

Q1 Financials: Mixed Bag for Tech Firms

First-quarter results show varied performances across tech companies. Urban Company reported a significant net loss, while logistics firm Shadowfax saw robust growth.

• Urban Company Q1 net loss: **Rs 92 crore**, contrasting with nearly Rs 7 crore profit a year ago.
• Urban Company operating revenue: Up **44%** year-on-year (YoY) to Rs 528 crore.
• Urban Company total expenses: Surged by **66.5%** to Rs 640 crore, primarily due to its InstaHelp service.
• Shadowfax Q1 net profit: Soared **eightfold** to Rs 65 crore.
• Shadowfax operating revenue: Climbed **65%** YoY to Rs 1,358 crore.
• Shadowfax order increase: **83%** more orders delivered, claiming a **28-30%** share of the third-party logistics (3PL) market.

Venture Capital Leadership Shifts

The venture capital sector in India is experiencing leadership changes. Former Elevation Capital partner Mayank Khanduja is reportedly in advanced discussions to join Bessemer Venture Partners India.

This follows other notable exits from firms including Z47 (formerly Matrix Partners India), India Quotient, and Peak XV Partners, indicating a broader churn.

Regulatory Scrutiny and Tech Giants’ Earnings

Electronics and Information Technology Secretary S Krishnan affirmed government content takedown orders to social media platforms are lawful. These actions are grounded in Article 19(2) of the Constitution and sections 69A and 79 of the Information Technology Act.

Separately, Hyderabad Cyber Crime Police registered FIRs against Meta India head Arun Srinivas and certain Facebook/Instagram account operators. The FIRs concern alleged objectionable posts targeting Prime Minister Narendra Modi.

Globally, Apple posted a record June quarter revenue of **$109.4 billion**, a **16%** YoY increase.