Raamdeo Agrawal says Zepto IPO was premature as valuation halves

Market veteran Raamdeo Agrawal, an investor in Zepto, has called the quick-commerce company's IPO plans "premature" after it delayed its public listing amid valuation concerns. In an interview with The Economic Times, the Motilal Oswal chairman said public markets demand earnings, not growth stories, and that Zepto should have waited until it was profitable or close to it. Zepto had confidentially filed for an Rs 8,010-crore IPO in December 2025 and received Sebi approval in May, but deferred the issue after discussions around pricing it at $2.5-3 billion, less than half the $7 billion valuation at which Calpers invested in October 2025.

The Deccan Herald, however, reports that Zepto's core brand promise of 10-minute delivery was effectively removed by a January government order, stripping the company of its key market differentiation. Brokerage CLSA data shows Blinkit's lead over Zepto in weekly active users widened from 1.79 million in early January to 7.7 million by May, while Zepto's paid downloads fell 97% in 2026 after it cut marketing spend. Zepto is now raising roughly Rs 1,000 crore from existing backers at a $4-4.5 billion valuation. Its Sebi approval remains valid until August 21, and founder Aadit Palicha has called the delay a pause of one to two quarters.