Zepto, an India-based quick-commerce startup that delivers groceries and other items in minutes, is seeking a lower valuation for its planned initial public offering as concerns about cash burn and profitability weigh on investor appetite for the sector.

Foreign investors have indicated interest at a pre-money valuation of about US$4.5 billion, while some domestic institutional investors value Zepto at US$3 billion to US$3.5 billion.

The company is aiming to raise as much as US$850 million, although the final valuation, issue size, and timing could still change.

Zepto’s draft prospectus proposes a fresh issue of 80.1 billion rupees (US$832 million) and an offer for sale of about 113 million shares.

According to an analysis of the draft prospectus, Zepto’s FY26 revenue from operations more than doubled to 226.2 billion rupees (US$2.34 billion), while its net loss widened to 59.1 billion rupees (US$612 million).

Operating cash burn totaled 34.6 billion rupees (US$358 million), although its adjusted EBITDA loss per order improved to 79 rupees (US$0.82).

The same analysis said the largest named use of proceeds is 17.3 billion rupees (US$180 million) for lease rentals at existing dark stores, while roughly a third is earmarked for general corporate purposes and future acquisitions.

Zepto handled 640 million orders in FY26, below Blinkit’s roughly 917 million. A broader market report said 12% to 15% of transaction value goes to last-mile logistics.

🔗 Source: Bloomberg