Zepto may put IPO on hold, in talks to raise ₹1,000 crore from existing investors: Sources

Zepto is likely to pause its initial public offering and instead is in talks to raise around ₹1,000 crore from existing investors, sources told CNBC-TV18.

The decision follows a long tussle over valuation with domestic mutual funds and insurers, who have become prominent participants in anchor books and pre-IPO rounds for new-age listings.

Zepto had lowered its valuation expectations to $4-5 billion before the issue. Domestic institutions, however, sought prices 30-40% below that level, with bids coming in at $3.5-4 billion on a pre-money basis, sources said.

That’s a steep reset from October 2025, when Zepto closed a $450 million round funded by U.S. pension fund CalPERS at a $7 billion valuation.

Why does funding go backwards?

The fund manager rejected Zepto’s attempt to benchmark its value against listed peers Eternal and Swiggy, as Zepto operates only in express trade and has no food delivery business, sources said.

Investor caution has also been generated by the sector’s listing practices. Swiggy is currently trading at around ₹251, about 35% below its IPO price of ₹390.

Where the IPO stands

Zepto received SEBI’s observation letter on May 8 and submitted a revised red herring proposal in June. The issue consists of a fresh issue of ₹8,010 crore and an offer for sale of 11.34 crore shares by existing shareholders.

The proposed ₹1,000 crore raise is about one-eighth of the fresh capital that Zepto had sought through the IPO. Separately, the ICDR standard requires financial verification of the proposal documents no later than 6 months after the date of opening. Zepto’s account runs through March 31, 2026, which puts the same September 30 deadline as the current filing. A listing after that date will require the company to increase its FY27 numbers in the first half.

Zepto reported an operating income of ₹22,624 crore in FY26, up from ₹11,110 crore in the previous year. Net loss widened to ₹5,905 crore from ₹4,700 crore in FY25.

The company held cash of ₹5,681 crore as of March 31, against Eternal’s ₹17,972 crore and Swiggy’s ₹13,512 crore as per their latest disclosures. Zepto operated 1,139 stores across 66 cities at the end of March.

Zepto has appointed Morgan Stanley, Goldman Sachs, Axis Capital, HSBC, JM Financial, IIFL Securities and Motilal Oswal as issue banks.

Zepto did not respond to CNBC-TV18’s questions at the time of publication.