Quick commerce firm Zepto is reportedly cutting its IPO size by nearly half and revising its valuation target to $2.5–$3 billion. This adjustment follows cautious investor sentiment toward high-growth tech firms. The move comes as the company balances rapid revenue expansion against a widening net loss in a highly competitive sector.
Quick commerce company Zepto is reportedly recalibrating its public market entry by reducing its IPO size and seeking a more conservative valuation. Recent reports suggest the company is negotiating a valuation between $2.5 billion and $3 billion, a sharp contrast to the $7 billion valuation recorded during its October 2025 funding round. The initial IPO size, which was planned at ₹5,106 crore, is now expected to be cut by nearly 50%.
This shift highlights the current mood among institutional investors, who are becoming more selective regarding the pricing of technology-led IPOs. While Zepto secured SEBI approval for its public issue in April 2026, the company is now adjusting its strategy to better align its private market valuation with public market expectations.
Financial Performance and Growth Targets
Zepto is currently focusing on demonstrating long-term financial viability to potential investors. The company reported operational revenue of ₹22,623.58 crore for FY26, more than double the ₹11,109.94 crore recorded in FY25. However, this aggressive expansion has come at a cost; the company’s net loss widened to ₹5,905.19 crore in FY26, up from ₹4,699.71 crore in the previous year.
To address concerns regarding these losses, management has shared a roadmap aiming for operating breakeven by FY28 and full profitability by FY29. The company also reported a 23% sequential revenue growth for the June 2026 quarter, pointing to this as evidence of its ability to scale while attempting to moderate its cash burn.
Competitive Pressures in Quick Commerce
Zepto operates in an intensely competitive environment, frequently referred to as the quick commerce sector. It faces direct competition from established players such as Blinkit, backed by Zomato, and Swiggy Instamart. These competitors are also investing heavily in expansion, network density, and consumer acquisition, which keeps profit margins across the sector under significant pressure.
For investors, the key monitorable remains how Zepto balances its capital-intensive expansion with the need to show a clear path to profitability. The success of its eventual public offering will likely depend on whether the company can sustain its growth momentum while successfully reducing its net losses in the coming quarters. Future updates regarding the final IPO size and the updated price band will be critical for assessing the market's reception of the company's valuation.