Zepto Eyes IPO in 2-3 Quarters After Valuation Reset

Quick commerce firm Zepto is targeting an Initial Public Offering (IPO) within the next two to three quarters, CEO Aadit Palicha informed employees. The company will not need to refile its draft IPO documents with SEBI.

Key Figures

• Target IPO timeline: 2-3 quarters
• Pre-IPO funding raised: Rs 1,000 crore (approx. $100 million)
• Valuation by mutual funds: $2.5 billion – $3 billion post-money
• Previous valuation (Oct 2025): $7 billion
• Peak quarterly cash burn: Over Rs 900 crore
• Current quarterly cash burn: Approx. Rs 700 crore

The revised timeline places the IPO between February and May 2027, with the company having until November 2027 for listing. Palicha stated Zepto is awaiting improved financial performance and more favorable market conditions. Only updated financial statements will be needed as an addendum to existing draft papers.

Funding Round and Valuation Shift

This follows Zepto’s decision to pause earlier IPO preparations, instead raising over Rs 1,000 crore in a pre-IPO funding round. Current investors like Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners participated. SEBI rules permit companies to raise up to 20% of their proposed fresh issue via such placements.

A primary reason for the IPO pause was a significant drop in valuation expectations. Domestic mutual funds, including SBI Mutual Fund, ICICI Prudential, Kotak, and HDFC, valued Zepto between $2.5 billion and $3 billion post-money. This is considerably lower than the $7 billion valuation achieved in October 2025.

Addressing Cash Burn

Mutual funds also reportedly raised concerns regarding Zepto’s cash burn rate. The company’s burn was once over Rs 900 crore per quarter, leaving about three quarters of cash reserves. This burn rate has since been reduced to approximately Rs 700 crore per quarter, extending its operational runway.

The IPO was initially anticipated around July 2026. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto operates as a major quick commerce platform in India. It is known for its rapid grocery delivery service through a network of dark stores.