Zepto Raises ₹1000 Cr Pre-IPO, Valuation Dips to $4.5B

Zepto is raising approximately Rs 1,000 crore through a pre-IPO fundraise after facing lukewarm investor interest for its initial public offering. This new funding round values the company at $4-4.5 billion, a notable decrease from its previous $7 billion valuation.

Co-founder and CEO Aadit Palicha had previously informed employees that the IPO would be delayed by two to three quarters. The initial plan for a public listing was around July, but this was postponed due to domestic investors valuing the company at a lower $3-3.5 billion range.

Pre-IPO Investor Engagements

Reports indicate Zepto was in discussions to secure over Rs 1,000 crore through this pre-IPO placement from existing investors. These include Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners. The company’s Draft Red Herring Prospectus (DRHP) had already been filed with SEBI and received approval for an original IPO valuation plan of Rs 8,000 crore.

Subsequent reports suggested a reduction in the IPO size to between Rs 5,000 crore and Rs 6,000 crore. The pre-IPO fundraise aims to strengthen Zepto’s balance sheet and support further investments in growth.

Financial Overview and Operations

Zepto’s operating revenue for Financial Year 2026 doubled to Rs 11,110 crore, up from Rs 5,454 crore in FY25. Despite this revenue growth, the company’s net loss increased by 26% to Rs 5,905 crore. During FY26, Zepto processed an average of 1.75 million orders daily.

By March 31, 2026, Zepto had expanded its operational footprint to 1,139 stores. Indian shareholders currently hold close to 40% of the company, with the new capital positioned to ensure financial stability ahead of an eventual public market debut.