Zepto Delays IPO After Lukewarm MF Response, Pivots To Rs 1,000 Crore Fundraise: Sources

Zepto plans to update its financials and then go back to market to launch its public issue, persons privy to the development said.

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Zepto IPO on pause.
Photo Source: NDTV Profit/AI Generated

Quick commerce and online delivery platform Zepto is going to pause its much-anticipated initial public offering for a few months, sources told NDTV Profit on Thursday. 

The buffer comes as the IPO failed to attract large mutual funds, the sources added. The company will raise up to Rs 1000 crore in the meantime from existing investors. Zepto is yet to comment on the development. 

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Zepto had filed its updated draft red herring prospectus (DRHP) for its Rs 10,000 crore or $1 billion IPO with the Securities and Exchange Board of India (SEBI) over a month ago. 

The IPO has a fresh issue of shares worth Rs 8,010 crore and an offer for sale segment aggregating up to 11.3 crore equity shares. 

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Nexus Ventures VI Holdings was the largest selling shareholder, offloading 57.4 million shares, followed by Nexus Ventures VII Holdings with 30.4 million shares.

Other investors participating in the OFS included Contrary ZEP Holdings LLC, which will sell 7.8 million shares, Razor Ventures Zepto LLC with 9.4 million shares, Kaiser Foundation Hospitals with 4.39 million shares, and Kaiser Permanente Group Trust with 4.16 million shares.

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As reported by NDTV Profit earlier, founders Aadit Palicha and Kaivalya Vohra were not among the sellers. The filing came at a time when India's quick commerce sector is increasingly being judged on scale, profitability and the quality of revenue rather than just growth.

ALSO READ: Zepto Q4 Net Loss Narrows To Rs 1,539 Crore, Revenue Rises 75% To Rs 7,498 Crore Ahead Of IPO

Zepto Q4FY26

Zepto reported a narrowing of its net loss to Rs 1,538.67 crore for the quarter ended March 31, 2026, down from Rs 1,831.91 crore in Q4 FY25.

For the full fiscal year 2025-26, Zepto's loss widened to Rs 5,905.19 crore, compared to a loss of Rs 4,699.71 crore in the previous fiscal, according to the company's updated draft red herring prospectus.

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Revenue from operations surged 75.26% to Rs 7,497.64 crore in Q4 FY26, from Rs 4,278.06 crore in Q4 FY25. Revenue from operations more than doubled to Rs 22,623.58 crore in FY26, as against Rs 11,109.94 crore in FY25. During Q4 FY26, Zepto handled 21 crore total orders, averaging 23.3 lakh per day

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