Institutional investors reportedly valued Zepto at around $2.3 billion during IPO discussions—nearly 68% below its previous $7 billion private valuation—prompting the company to postpone its public listing.
The valuation reset reflects a broader shift in public markets, where investors are placing greater emphasis on profitability, free cash flow, and sustainable unit economics rather than high-growth narratives.
Rather than accepting a steep valuation cut, Zepto has chosen to delay its IPO by 2–3 quarters and strengthen its financial performance before returning to the market. The company is also exploring a pre-IPO funding round from existing investors to support growth.
The development highlights the growing disconnect between late-stage private market valuations and public market expectations, particularly for loss-making technology companies preparing to list.
Zepto's experience is expected to influence the pricing strategy of future startup IPOs, with companies likely to prioritise stronger financial metrics before approaching public investors.