Zepto is reportedly considering reducing its IPO size by around 20%, with the fresh issue expected to be $650–700 million, down from earlier plans, after investor feedback during pre-IPO discussions.
Institutional investor bids are valuing the company at around $3.5–4 billion, significantly below its previous $7 billion private market valuation, reflecting greater emphasis on profitability and sustainable growth.
The company is reportedly resizing the issue rather than forcing a higher valuation, a move aimed at improving subscription demand and supporting stronger post-listing performance.
Despite the valuation reset, Zepto continues to benefit from strong growth in India's quick-commerce market and plans to use the IPO proceeds to expand its dark store network, strengthen technology infrastructure, and enhance supply chain capabilities.
The development reflects a broader shift in public markets, where investors are prioritising unit economics, cash flow visibility, and disciplined capital allocation over aggressive growth alone.
