Zepto’s reported plan to reduce its IPO size and seek a lower valuation could have implications for investors holding its unlisted shares, if the company ultimately prices the issue within the reported range.
Quick commerce startup Zepto is reportedly considering reducing the size of its upcoming initial public offering (IPO) after receiving cautious feedback from institutional investors. According to media reports, the company is now evaluating a fresh issue of $650–700 million, lower than its earlier plan to raise around $850 million (approximately ₹8,010 crore).
While a smaller IPO size may help improve institutional participation, the bigger development for unlisted investors is the reported valuation being discussed. Media reports suggest Zepto is considering a pre-money valuation of $3.5–4 billion, lower than the valuation reflected in the current unlisted market.
At the current unlisted share price of around ₹37, Zepto is valued at approximately ₹46,632 crore based on its fully diluted share capital. If the company prices its IPO at a $4 billion valuation, the valuation would be around ₹37,696 crore, translating into an estimated share price of ₹29.91. At the lower end of the reported range, a $3.5 billion valuation would value the company at around ₹32,984 crore, with the estimated share price falling to approximately ₹26.17.
If the IPO is eventually priced within this reported range, investors holding Zepto’s unlisted shares at the current market price could see a decline in valuation. Compared with the present unlisted price of ₹37 per share, an IPO at $4 billion would represent a decline of around 19.2%, while a $3.5 billion valuation would imply a decline of approximately 29.3%.
The correction in Zepto’s unlisted shares had already begun before these latest reports. Over the past six months, the stock has reportedly fallen from around ₹58 to nearly ₹37, a decline of more than 36%. The sharp correction indicates that the private market has already started adjusting expectations as the company moves closer to its public listing.
The reported IPO valuation also marks a sharp contrast with Zepto’s most recent funding round. In October 2025, the company raised $450 million at a reported valuation of $7 billion. The current IPO discussions, if they materialise, would therefore represent a significant reduction from its last private funding valuation. Such differences are not uncommon, as private funding rounds and public market IPOs are driven by different investor expectations. Venture capital investors often value companies based on long-term growth potential, whereas institutional IPO investors generally focus more on profitability, cash flows, business sustainability and valuation multiples.
For unlisted shareholders, the final IPO pricing will be a key factor to watch. A lower IPO valuation does not necessarily reflect weaker business fundamentals, but it can influence the market value of unlisted shares and investor returns. The final issue size, price band and valuation will only be known once Zepto files its updated offer documents and announces the IPO terms.
As of now, Zepto has not officially confirmed either the revised IPO size or the reported valuation range. Investors should therefore treat the current figures as media-reported estimates until the company makes an official announcement.