Zepto has said that it will raise funds through a pre-IPO financing amid tepid response from investors to its Initial Public Offering (IPO). The company did not share the specifics of the transaction.
However, it said that the move will strengthen its balance sheet.
Zepto is looking to raise around Rs 1,000 crore through the round at a valuation of $4-4.5 billion, sharply lower than its last valuation of $7 billion, according to a report by TOI.
Earlier, the co-founder & CEO Aadit Palicha had told employees that the company will defer its IPO by two to three quarters. Zepto has been initially eyeing a listing around July has stalled the process after domestic investors valued it at $3-3.5 billion.
Reports earlier suggested that Zepto was in talks to raise more than Rs 1,000 crore through a pre IPO placement from existing investors including Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners.
Zepto IPO was initially planned at valuation of around Rs 8,000 crore with the company filed its DRHP with SEBI and received the approval. The reports have suggested that the quick commerce platform is likely to reduce the IPO size to around Rs 5,000 crore to Rs 6,000 crore.
In its lates financial results for the Financial Year 2026, Zepto doubled its operating revenue to Rs 11,110 crore from Rs 5,454 crore in FY25. Its net loss, however, widened 26% to Rs 5,905 crore.
The company has further processed an average of 17.5 lakh orders every day during the financial year and expanded its network to 1,139 stores as of March 31, 2026.
Through the additional capital, Zepto aims to deepen investments in growth while entering the public markets from a position of financial stability.
Currently, Indian shareholders collectively hold nearly 40 per cent of Zepto.