Quick-commerce operator Zepto Ltd is targeting a late April deadline for filing updated documents for an initial public offering (IPO) with India's market regulator, even as it faces valuation concerns, said three people aware of the matter.
Zepto's December 2025 confidential filing is likely to be cleared in another four weeks, one of the people quoted earlier said–all three spoke on the condition of anonymity. Following the clearance, Zepto plans to file its updated draft red herring prospectus with the Securities and Exchange Board of India (Sebi) before the end of April, this person added.
An updated prospectus is a public disclosure of the share sale details to investors after confidential filings. These include financial metrics, risk factors, and operational data.
Zepto did not respond to queries emailed on March 6.
Zepto’s management has initiated preliminary talks with domestic mutual funds, the second person said.
IPO-bound companies use these interactions to gauge domestic institutional interest and secure anchor participation for their upcoming issue. Domestic institutional investors often provide baseline stability for large-scale public offerings in the Indian market, absorbing significant portions of the qualified institutional buyer (QIB) quota.
Outreach to international institutional investors has not yet commenced, the second person added. Zepto plans to formally tap global investors only after the updated offer document is filed and the regulatory review process advances, the person said.
Valuation review ahead of listing
However, the Aadit Palicha-led company's valuation target for the public listing has also come under review, the third person told Mint.
Zepto was valued at $7 billion in its $450 million private capital raise, led by the California Public Employees’ Retirement System, in October 2025.
Current conversations indicate that the IPO valuation can be reduced by 15-20% from that figure, the third person said. This adjustment establishes a base valuation range of $5.6 billion to $5.95 billion for the public market debut.
This would not be something new. In 2026 alone, two private equity-backed companies have gone ahead with their IPOs at valuations lower than their last fundraises as incoming institutional investors squeezed out private market valuations.
Fractal Analytics Ltd launched its offer at a 24% markdown from its previous fundraising in July 2025, where it was valued at $2.44 billion.
Aye Finance Ltd, too, launched its IPO at around a $350 million valuation, slightly lower than the company's Series G round in the private market a year ago.
The Economic Times had reported in December that the Zepto offer was likely to be worth $1.3 billion. A confidential filing allows companies to revise the offer size.
Officials close to Zepto, however, maintained that the company is likely to eye a $7-8 billion in valuation for the offer.
Competition and financial performance
"There have been measurable changes in the dynamics of the quick commerce sector over the last few months," the chief investment officer at a domestic mutual fund told Mint, speaking on the condition of anonymity.
"Competing firms such as Eternal Ltd’s Blinkit, Swiggy Ltd’s Instamart and newer entrants like Amazon and Flipkart are already crowding the space," the person said. “Asset managers are obviously reviewing unit economics data, including average order values, delivery costs per order, and customer retention rates, to determine appropriate entry multiples.”
In fiscal 2025, Zepto's top line jumped 129% year-on-year to ₹9,669 crore, but net loss widened nearly three times to ₹3,367 crore.
If the IPO goes through, it will mark one of the shortest journeys from launch to listing in India’s consumer internet market. Founded by Palicha and Kaivalya Vohra, Zepto has raised large rounds of funding as it spent aggressively to build market share against Blinkit and Instamart.