[Update] Zepto Confirms IPO Pause, Plans Pre-IPO Fundraise

Quick commerce platform Zepto has officially announced a pause to its IPO plans, shifting focus towards execution. The company's shareholders have approved a pre-IPO private placement of equity, with the proceeds aimed at strengthening its balance sheet. However, Zepto did not disclose the size of the round or a new timeline for its public listing.

The startup intends to update its draft red herring prospectus (DRHP) with improved financial metrics and valuation terms within the next two to three quarters. This would position Zepto for a potential listing between February 2027 and May 2027. CEO Aadit Palicha revealed during an employee town hall meeting that the company will list on exchanges once financial improvements and favorable valuation terms are achieved.

Despite the IPO pause, Zepto plans to raise around ₹1,000 Cr (approximately $105 Mn) through the pre-IPO financing from domestic and overseas investors. The revised timeline follows Zepto's struggle to secure favorable valuation terms from institutional backers, with reports suggesting that mutual funds valued the startup at around $2.5 Bn-$3 Bn, far below the company's private market valuation of $7 Bn and its initial private market valuation of $7 Bn following a $450 Mn funding round in October 2025.