Zepto IPO Delayed? Valuation Disagreement Hits E-commerce Giant
By Business Desk
Zepto’s IPO faces potential delay due to a valuation gap ($2.5-3B vs $7B). E-commerce leaders Amazon & Flipkart adjust festive season strategies.
Quick commerce startup Zepto is considering an initial public offering (IPO) delay, facing a significant valuation disagreement with institutional investors. They propose a valuation between $2.5-3 billion, considerably lower than Zepto’s last funding round at $7 billion.
This potential deferral highlights a clear disconnect between the company’s private market valuation expectations and public market realities. Zepto is also exploring options to reduce the overall size of its planned offering.
Key Numbers: Zepto IPO
- Institutional Investor Valuation Proposal: $2.5-3 billion
- Last Funding Round Valuation (October 2025): $7 billion
- Draft IPO Papers Valid Until: August 21
- Potential IPO Size Reduction: 20% from Rs 8,010 crore
E-commerce Festive Season Focus
Meanwhile, e-commerce giants Amazon and Flipkart are shifting their strategy for the upcoming festive season, prioritizing value growth over sheer volume. This tactical change has led to a notable increase in the value of their festive inventory orders.
Festive Inventory Shift
- Festive Inventory Order Value Increase: 15-25%
- Premium Item Order Increase: 20-25%
- Mass-Segment Order Growth: Flat or marginal
- High-Value Goods Stocked: Front-load washing machines, large televisions (43 inches and above), premium refrigerators, smartphones priced above Rs 30,000
IT Sector Hiring Trends
India’s top six IT firms collectively added over 5,400 employees during Q1 FY27, indicating a strategic shift towards selective, capability-driven recruitment. This marks a departure from previous volume-based hiring approaches across the sector.
Workforce Changes Q1 FY27
- TCS Net Addition: 9,000 employees (largest quarterly gain in three years)
- Wipro: Increased headcount
- Infosys, Tech Mahindra, HCLTech: Reduced workforces
- Key Hiring Skill Areas: AI, cloud, cybersecurity, data engineering, enterprise applications
Experts attribute these trends to uncertain demand and the early impact of artificial intelligence on reducing the need for replacement hiring. The focus for new hires is clearly on specialized, high-demand technical skills.
Other Key Developments
In other significant business news, SoftBank-backed B2B commerce and lending platform OfBusiness reported a 7% year-on-year decline in revenue for FY26. This occurred despite a 21% rise in profit, following its exit from low-return categories.
Rapido-backed food delivery platform Ownly is planning a multi-city expansion after achieving strong growth in Bengaluru. Additionally, the Karnataka High Court has requested responses from both central and state governments regarding a writ petition filed by Uber India challenging the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025.