Zepto To Now Re-Attempt IPO By May 2027: Report
Zepto, a quick commerce giant, has put its public listing on the backburner and announced plans to raise about ₹1,000 Cr via a pre-IPO round. However, the startup now plans to list on the exchanges in the next two to three quarters, aiming to list between February 2027 an…
Intelligence analysis by Llama
Zepto's CEO Aadit Palicha has told employees that the startup will list on the bourses once its financial metrics improve and valuation terms turn more favourable. The startup will not have to refile its DRHP from scratch as it still has time until November 2027 to list on the stock exchanges.
Zepto, a quick commerce company, is planning to list on the stock exchange in the next two to three quarters. This means they will sell shares to the public and become a publicly traded company. The company's CEO, Aadit Palicha, has told employees that they will list on the bourses once their financial metrics improve and valuation terms turn more favourable.
Analysis
A $60B Vote of Confidence
Zepto's decision to re-attempt its IPO plans is a significant development in the Indian startup ecosystem. The startup's valuation has been a subject of discussion, with mutual funds valuing it at around $2.5 Bn-$3 Bn, significantly below the company's expectations. However, the investor scrutiny has not been without reason. Zepto currently burns over ₹700 Cr of cash each quarter, and the competition in the quick commerce landscape shows no signs of letting down. Players in the category continue to spend heavily on dark store networks, discounts, and customer acquisition. On top of this, the startup continues to post heavy losses. Zepto's net loss widened to ₹5,095 Cr in FY26 from ₹4,697 Cr a year earlier, even as operating revenue nearly doubled to ₹22,624 Cr. Notably, this is not the first time that the Aadit Palicha-led startup has postponed its IPO plans. In June 2025, Zepto first paused IPO plans for a year to cut cash burn and improve profitability. It then once again revived its public listing plans a few months later after filing its DRHP with SEBI in November. It then received SEBI's nod and filed its updated DRHP with the markets regulator in July this year. According to its UDRHP, the proposed IPO was to include a fresh issue of up to ₹8,010 Cr and an offer for sale of up to 11.35 Cr shares. The new IPO timeline comes as Zepto appears to have made no headway with its institutional backers on valuation concerns. The valuation is also less than half of its $7 Bn private market valuation, which it achieved after raising $450 Mn in October 2025. However, the investor scrutiny has not been without reason. As per previous reports, Zepto currently burns over ₹700 Cr of cash each quarter even as competition in the quick commerce landscape shows no signs of letting down. Players in the category continue to spend heavily on dark store networks, discounts, and customer acquisition. On top of this, the startup continues to post heavy losses. Zepto's net loss widened to ₹5,095 Cr in FY26 from ₹4,697 Cr a year earlier, even as operating revenue nearly doubled to ₹22,624 Cr.
Key points
- Zepto has put its public listing on the backburner and announced plans to raise about ₹1,000 Cr via a pre-IPO round.
- The startup now plans to list on the exchanges in the next two to three quarters, aiming to list between February 2027 and May 2027.
- Zepto will not have to refile its DRHP from scratch as it still has time until November 2027 to list on the stock exchanges.
- The startup's valuation has been a subject of discussion, with mutual funds valuing it at around $2.5 Bn-$3 Bn, significantly below the company's expectations.
If Zepto is able to list on the stock exchange successfully, it could lead to a significant increase in its valuation. This could also attract more investors and help the company raise more funds to grow its business.
However, there are also risks associated with Zepto's decision to re-attempt its IPO plans. If the company is unable to improve its financial metrics and valuation terms, it could lead to a decline in its valuation and make it harder for the company to raise funds.
