Zepto is reportedly considering an IPO valuation of around $4.5 billion, significantly lower than its $7 billion private valuation achieved during its last funding round, reflecting a more cautious approach to public market pricing.
The company aims to raise approximately $850 million through the IPO, with the proceeds expected to fund dark store expansion, supply chain strengthening, and technology investments.
Institutional investors are said to be valuing quick commerce companies more conservatively due to continued cash burn, intense competition, and the need for a clearer path to profitability.
A lower IPO valuation could improve the chances of strong investor demand and successful post-listing performance, a strategy increasingly adopted by new-age technology companies entering the public markets.
The development comes as Zepto continues to expand its business through initiatives such as premium grocery offerings and network expansion, while preparing for its public market debut.
