Zepto’s steep IPO valuation reset is rapidly reshaping investor bets on India’s quick commerce market, putting listed rivals Swiggy and Eternal on course for their strongest monthly performances in years as traders wager that a cash-constrained competitor will struggle to defend market share.
Swiggy shares have surged nearly 24% in July, heading for their best month since the company listed in November 2024. Industry leader Eternal has gained 17%, its strongest monthly advance in more than two years.
Behind the rally is growing pressure on loss-making Zepto, whose planned initial public offering has run into resistance from institutional investors concerned about excessive cash burn and its valuation expectations.
Top domestic mutual funds have pushed back against the price sought by the quick-commerce company. At the same time, large institutional investors have indicated a valuation significantly below its last private funding round, according to reports.
Also Read | Zepto IPO likely deferred over pricing standoff with mutual funds: sources
The valuation now under discussion is about $2.5 billion to $3 billion, sharply below the $7 billion at which Zepto raised $450 million in October 2025 in a funding round led by US-based pension fund Calpers. It is also lower than the $3.5 billion to $4 billion range discussed earlier.
Zepto is negotiating the IPO pricing and could defer the issue over the next couple of weeks if the gap between its expectations and investor demand does not narrow, ET Tech reported, citing people aware of the matter.
