Zepto Delays IPO Plans

Zepto has postponed its IPO plans, as reported by several media sources, due to ongoing discussions regarding its valuation with potential investors. The firm may raise more than Rs 1,000 crore (approximately $105 million) through a pre IPO placement, as mentioned in a Moneycontrol article. Existing investors such as Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners are anticipated to take part in this funding round.

Regulatory Framework for Pre IPO Placements

As per SEBI regulations, companies preparing for an IPO can secure up to 20% of their intended fresh issue through a pre IPO placement, with the raised amount adjusted against the fresh issue portion of the public offering.

Initial IPO Plans and Adjustments

Originally, Zepto aimed to raise around Rs 8,000 crore through its IPO. In June, the company submitted its revised draft red herring prospectus to SEBI for a fresh issue amounting to Rs 8,010 crore and received approval from the regulator a month later. However, reports indicate that the IPO size has subsequently been reduced to between Rs 5,000 and Rs 6,000 crore.

Financial Overview of Zepto

The Bengaluru-based company saw its operating revenue double to Rs 11,110 crore in FY26, a significant increase from Rs 5,454 crore recorded in FY25. However, Zepto also experienced a 26% increase in losses, which reached Rs 5,905 crore, marking it as one of the most significant loss-making startups in the country. By the end of FY26, the company had current assets amounting to Rs 9,638 crore, including cash and bank balances totalling Rs 973 crore.