Zepto IPO anchors $5.1bn valuation, Norges leads book
Indian quick-commerce firm Zepto is securing strong institutional backing for its Rs 11,000 crore offering, signaling sustained investor appetite for the rapidly expanding sector despite valuation debates.
The anchor book for Indian quick-commerce startup Zepto’s initial public offering is nearing closure, with Norway’s sovereign wealth fund Norges and domestic brokerage Motilal Oswal positioned to take up 40% to 45% of the tranche. Securing such large commitments from a mix of global and domestic institutional investors provides a strong foundation for the broader share sale. This anchor portion is expected to account for 30% to 45% of the total issue size, which is estimated at around Rs 11,000 crore.
The heavy anchor demand is backing a targeted valuation of $5.1 billion for the company. However, the pricing strategy faces a degree of friction. Sources indicate that some foreign investors have expressed interest in the deal, but only at a lower pre-money valuation of approximately $4.5 billion. This gap between the company's target and certain offshore bids highlights the ongoing debate over the premium attached to India's rapid-delivery sector.
Structured entirely as an offer for sale, the IPO will see existing shareholders offload 11.35 crore equity shares. This means the capital raised will flow directly to early backers and founders rather than funding new corporate expansion. For the financial year 2025-26, Zepto generated revenue from operations of Rs 22,624 crore, alongside a net receivables value of Rs 24,816 crore. These figures will be closely scrutinized by public market investors comparing them to existing listed peers.
A successful listing would make Zepto the third major player in its niche to go public, joining Eternal and Swiggy on the Indian stock exchanges. The company will compete directly with those entities' quick-commerce arms, Blinkit and Instamart, respectively. The public market debut comes as India's rapid-delivery sector experiences a period of aggressive expansion, forcing investors to weigh top-line growth against the capital-intensive nature of the business model.
Zepto was established by Aadit Palicha and Kaivalya Vohra, both of whom dropped out of Stanford University to build the business. The company initiated the regulatory process for the share sale in December 2025, filing its preliminary papers through the confidential pre-filing route with the Securities and Exchange Board of India. The company did not respond to requests for comment on the anchor book allocations.
