Zepto, the quick commerce startup, is considering delaying its initial public offering as negotiations with institutional investors suggest a valuation between $2.5 billion and $3 billion, significantly lower than its earlier expectations. The company’s draft prospectus remains valid until August 21, but if the valuation gap is not bridged, Zepto may defer the IPO, according to inc42.com.
The valuation under discussion marks a sharp reset for Zepto, which was previously evaluated at a pre-money valuation of about $4.5 billion by foreign institutional investors, implying a post-money valuation of $5.1 billion. This is also less than half of its $7 billion private market valuation achieved after raising $450 million in October 2025. Zepto has received formal price indications from large institutional investors and is currently negotiating before deciding whether to proceed with the public listing, inc42.com reported.
Investor concerns focus on Zepto’s cash burn and its path to profitability amid intense competition in the quick commerce sector. The startup competes with Amazon-owned Blinkit, Swiggy Instamart, and other players, which has heightened scrutiny on its financial sustainability. The valuation reset reflects broader market caution toward quick commerce startups facing profitability challenges, according to inc42.com.
Zepto’s draft IPO prospectus remains valid until August 21, setting a deadline for the company to finalize its valuation discussions and decide on proceeding with the public listing, inc42.com stated.