Zepto confirms pre-IPO private placement, prioritises execution over immediate listing

Quick commerce major Zepto said on Saturday that it has reached an agreement with major shareholders to close a pre-IPO private placement of equity ahead of its planned stock market listing, aimed at strengthening its balance sheet.

The company said the fresh financing will add to its existing cash reserve of ₹5,681 crore, and confirmed it had zero debt as of March 31, 2026.

"As part of the IPO process, the Board and Founders have received terms from public market investors to list the company and are appreciative of the expressed interest. However, at this time, and afforded by the company's strong balance sheet, Zepto will focus on continued execution," the company said in a statement.

However, Zepto's statement does not confirm any delay to its IPO plans. Instead, the company said it is currently prioritising execution "at this time."

It added that its DRHP filing will be updated with operating results and financials in the coming quarters, and that it intends to list within the timeframe permitted by SEBI under its approved UDRHP.

Zepto is set to raise funds at a valuation of around $4.5 billion (approximately ₹42,925 crore), with the round expected to be led primarily by domestic investors, raising Indian shareholding in the company from its current level of around 40%.

This marks a moderation from the $7 billion valuation the company commanded in October 2025, when it raised $450 million in a round led by the California Public Employees' Retirement System (CalPERS).

Founded by Stanford University dropouts Aadit Palicha and Kaivalya Vohra, Zepto filed its preliminary IPO papers in December 2025 through the confidential pre-filing route.

According to updated draft papers filed in June 2026, the company is looking to raise ₹8,010 crore through a fresh issue of shares, alongside an offer for sale of 11.35 crore equity shares by existing shareholders.

For FY26, Zepto reported revenue from operations of ₹22,624 crore and a net receivables value (NRV) of ₹24,816 crore. The company processed an average of 17.5 lakh orders per day during the year, with volumes rising to 23.3 lakh orders per day in the quarter ended March 2026.

As of 31 March 2026, Zepto operated 1,139 stores and had an annual transacting user base of nearly 48 million. Upon listing, it will join Eternal and Swiggy on the stock exchanges, competing directly with their quick-commerce arms, Blinkit and Instamart.