Unlisted shares of quick-commerce platform Zepto have dropped 23% over a five-day trading span, signaling growing investor reluctance to support elevated valuations ahead of the company’s anticipated initial public offering. The sharp decline in gray market trading reflects mounting skepticism among domestic and international institutional investors regarding the startup’s pathway to profitability. Recent market estimates indicate that potential investors are valuing the fast-delivery firm between $3 billion and $3.5 billion, representing a significant haircut from the $7 billion valuation achieved during its private funding round last October. The cooling sentiment follows heightened scrutiny over intense cash burn across the quick-commerce sector, where players face steep operational costs associated with dark-store expansion, marketing, and order fulfillment. With competitors like Swiggy experiencing post-listing share price corrections and market leader Blinkit aggressively expanding, investors are demanding realistic pricing and clearer visibility on unit economics before committing capital to Zepto’s planned $850 million equity raise. Consequently, private market traders have begun offloading shares, forcing unlisted valuations lower as the startup navigates IPO pricing discussions with investment bankers.
Zepto Unlisted Shares Plunge as Valuation Fears and Cash Burn Pressure Pre-IPO Investor Sentiment
