Zepto is in advanced negotiations with institutional investors over its IPO valuation, with several domestic and global funds seeking a lower entry price than the company initially proposed.
The discussions highlight the gap between private market valuations and public market expectations, as investors increasingly prioritise profitability, cash burn, and sustainable unit economics over rapid growth.
While anchor investors such as Norges Bank and Motilal Oswal have shown interest, the final valuation remains a key factor in determining the size and timing of the IPO.
Zepto is reportedly weighing multiple options, including lowering its valuation, resizing the issue, or delaying the listing, to ensure healthy demand and a successful market debut.
The outcome of these negotiations is likely to influence not only Zepto's listing but also valuation benchmarks for upcoming Indian startup IPOs.
