Zepto's decision to defer its IPO followed extensive discussions with domestic institutional investors, who reportedly assigned a significantly lower valuation than the company had anticipated, underscoring the widening gap between private and public market pricing.
According to the report, public market investors are now prioritising profitability, free cash flow, and sustainable unit economics over rapid revenue growth, making valuation discipline a key factor for new-age technology listings.
Rather than proceeding at a discounted valuation, Zepto has chosen to delay its listing and continue improving financial performance, giving the company more time to strengthen margins and enhance investor confidence.
The episode reflects a broader shift in India's IPO market, where startup valuations are increasingly being benchmarked against listed peers such as Eternal (Blinkit) and Swiggy, instead of private funding round valuations.
While the IPO timeline has been extended, Zepto continues to remain focused on expanding its quick-commerce business and preparing for a stronger public market debut once valuation expectations align.
