Indian quick-commerce startup Zepto has suspended its initial public offering and is instead seeking to raise more than ₹1,000 crore (approximately $120 million) through a pre-IPO private placement.
The move marks a strategic pivot for the Blinkit rival, which had been advancing plans for a public listing with a target valuation of roughly $3 billion.
Under Securities and Exchange Board of India (SEBI) regulations, companies preparing for an IPO are permitted to raise up to 20 percent of their proposed fresh issue through such pre-IPO placements.
Zepto’s decision to utilize this mechanism suggests the company is prioritizing immediate capital injection and valuation stabilization over the timeline of a public debut.
The shift comes as the broader Indian startup ecosystem faces continued pressure to demonstrate path-to-profitability metrics to both private and public investors.
This development follows a significant downward revision in Zepto’s market expectations.