Quick commerce major Zepto has officially confirmed that it will undertake a pre-IPO private placement ahead of its planned public listing, while indicating that it will continue to focus on business execution before launching its IPO.
In a statement issued on Friday, the company said it has agreed with major shareholders to close a pre IPO private placement of equity. The financing will strengthen its balance sheet, which stood at Rs 5,681 crore in cash with no debt as of March 31, 2026.
"As part of the IPO process, the Board and Founders have received terms from public market investors to list the company and are appreciative of the expressed interest. However, at this time, and afforded by the company's strong balance sheet, Zepto will focus on continued execution," the company said.
Zepto added that it will update its draft red herring prospectus (DRHP) with its operating results and financials in the coming quarters and intends to list within the timeframe permitted by SEBI under its approved UDRHP.
The announcement comes days after multiple media reports indicated that the company had postponed its IPO plans amid valuation discussions with investors. Reports had also suggested that Zepto was in talks to raise more than Rs 1,000 crore through a pre IPO placement from existing investors including Glade Brook, General Catalyst, Goodwater Capital, and Nexus Venture Partners.
Zepto had initially planned an IPO of around Rs 8,000 crore. In June, the company filed its updated DRHP with SEBI for a fresh issue of Rs 8,010 crore and subsequently received the regulator's approval. Recent reports had indicated that the company may reduce the IPO size to around Rs 5,000 crore to Rs 6,000 crore.
According to its FY26 financial statements, Zepto doubled its operating revenue to Rs 11,110 crore from Rs 5,454 crore in FY25. Its net loss, however, widened 26% to Rs 5,905 crore.