Zepto unlisted shares crash 25% as quick commerce major eyes $1 billion IPO in Q2

Rapid-commerce firm Zepto is preparing to publicly file for an IPO in the first half of June that could raise up to $1 billion, people familiar with the matter said. Roadshows may begin next month ahead of a July launch. Sources said that any delay in the issue is unlikely and the company is working on its updated DRHP, which may be filed soon. However, they could not give a timeline.

The IPO is expected to include a fresh issue and secondary share sales by existing investors, with proceeds likely to fund expansion. Discussions are continuing and the size and timing may still change. The issue could be only India’s second billion-dollar IPO this year, along with SBI Mutual Fund issue, and may help revive a market hit by weak dealmaking as investors assess Iran war fallout.

Zepto was valued at $7 billion in its last $450 million funding round in October. It competes with Amazon India, Swiggy, Eternal’s Zomato and Tata-backed BigBasket. It is working with Axis Capital, Motilal Oswal, and the local units of Morgan Stanley, HSBC and Goldman Sachs.

However, unlisted shares of Zepto have taken a big hit recently. The stock has cracked nearly 25 per cent in the last one quarter, or say three months as the stock has tumbled to Rs 42-43 levels lately. However, the stock was trading around Rs 52-55 in February-March 2026.

Dinesh Gupta, Co-Founder of UnlistedZone, a Delhi-NCR based boutique firm, said that the stock has corrected amid the rising volatility in the secondary market space and the current prices are largely fair as IPO is expected around these levels only. He expects Zepto to raise Rs 10,000-11,000 crore from IPO at a valuation of Rs 40,000-44,000 crore.

"There is nothing wrong with the company but Zepto will be an interesting case study as its peers Eternal Ltd and Swiggy have moved largely in opposite directions. This proves that the company will need to shift focus towards profitability over cash-burn for customer acquisition," Gupta adds.

Zepto confidentially filed draft papers in late December and received observations from the capital markets regulator SEBI on May 10. Under local rules, prospectuses must be public for at least 21 days before launch. To recall, Indian companies have raised more than 33,00 crore through share sales in 2026, below the previous two years.

People are looking at Zepto shares because of its fast growth strategy and competing with the likes of Eternal-backed Blinkit and Swiggy Ltd, said Piyush Jhunjhunwala, Founder & CEO at Stockify. However, he cautioned that buying unlisted shares can be risky as liquidity and valuations comfort may vary, advising only risk-taking investors with financial understanding to participate.

"Zepto may give a chance to give strong returns but involves a major big risk. One should look at Zepto's business and competition. One should understand the fundamentals and prospects of turning profitable in the long-run. Instead of chasing hype or euphoria, one should try to see the value-offered in the business," he suggested.