Zepto postponed its planned initial public offering (IPO) targeting $1.2-1.3 billion after raising over $1 billion in 2024 at a $5 billion valuation. The startup’s revenue more than doubled to ₹22,623.6 crore in fiscal year 2026 from ₹11,109.9 crore in FY25, but its consolidated net loss increased 26% year-on-year to ₹5,905 crore, according to inc42.com.
The IPO delay followed reports that some major mutual funds questioned Zepto’s $7 billion private market valuation, considering it unjustified compared to trading multiples of competitors Blinkit and Instamart, owned by Eternal and Swiggy respectively. Zepto’s higher losses relative to these rivals added to concerns over its premium valuation. While these factors were widely discussed, the company has not officially confirmed the reasons behind the deferment, inc42.com noted.
Zepto’s situation highlights challenges in the Indian quick-commerce sector, where competitors Blinkit and Instamart have more moderate losses and established market positions. The startup’s rapid revenue growth contrasts with its widening losses, raising questions about profitability and valuation benchmarks ahead of public market scrutiny. This episode reflects broader investor caution in valuing high-burn startups in the sector.
Zepto’s FY26 financials reveal a revenue of ₹22,623.6 crore and a net loss of ₹5,905 crore, underscoring the scale of its operations and financial challenges as it navigates its IPO plans, inc42.com reported.