Zepto IPO delay sparks share price slump
Zepto’s IPO delay has triggered a sharp 23% drop in its unlisted shares over five trading sessions, pushing the grey‑market valuation below $3.5 billion.
Share price slides as pre‑IPO raise replaces public offering
After postponing the public issue originally slated for July, the quick‑commerce firm announced a smaller fundraising of roughly ₹1,000 crore through a pre‑IPO placement. Wholesale quotes fell from about ₹35 to ₹27 per share this week, according to participants in the unlisted market.
Just a month earlier, the same shares changed hands at around ₹38, and at the December 2025 peak they traded near ₹68 before easing to roughly ₹62 in January 2026. At current levels, the stock has lost nearly 60% from that high.
Using the fully diluted share count of approximately 1,260 crore disclosed in Zepto’s updated draft red herring prospectus (DRHP), the present wholesale price implies a market capitalisation of about ₹34,000 crore, or $3.6 billion. By contrast, the ₹38 price a month ago suggested a valuation near $5 billion, while the December peak approached $9 billion, though those trades occurred in a thinner market before the DRHP update.
Related: Kunal Shah to lead WhatsApp
Valuation gap fuels the fundraising shift
Domestic institutional investors had been discussing a valuation range of $2.5‑3 billion, lower than the $4.5 billion Zepto sought. Lead bankers tried to defend a price closer to $4‑4.5 billion, but buy‑side participants pushed for about $3 billion or less.
Existing backers—including Glade Brook, General Catalyst, Goodwater Capital and Nexus Venture Partners—are expected to take part in the ₹1,000 crore placement. The move follows a widening gap between the price existing shareholders wanted and what institutional buyers were prepared to pay.
Analysts note that the repricing aligns with the valuation range previously floated among domestic investors, suggesting the market has largely accepted the lower expectations.
Growth outpaces profitability
Zepto reported revenue more than doubling to ₹22,623.58 crore in FY26, up from ₹11,109.95 crore a year earlier. However, its net loss widened to ₹5,905.19 crore from ₹4,699.71 crore.
Brokerage reports highlighted Zepto’s industry‑leading order density and rapid expansion. Jefferies estimated a loss of about ₹79 per order in FY26, compared with near‑break‑even economics at Blinkit. JPMorgan said Zepto posted the highest EBITDA burn among the three major quick‑commerce players, despite leading in orders per dark store.
Related: Manipal Health IPO closes 4.89x subscribed, signals 1% listing gain
For newcomers, the situation highlights a common tension in fast‑growing tech firms: revenue can surge while cash burn and losses expand, forcing investors to balance growth potential against financial sustainability.
Investors remain cautious.
The current wholesale price also sits well below the weighted average acquisition cost of ₹37.74 per share for the Series H funding rounds completed in October‑November 2025, indicating that secondary market trades now occur at a sharp discount to the latest primary issue price.
While the pre‑IPO placement may provide immediate capital, the broader market will watch how Zepto manages its expanding loss profile and whether it can narrow the gap between its growth trajectory and profitability.
