Zepto’s public market debut is taking concrete shape. Norway’s Government Pension Fund Global managed by Norges Bank Investment Management and commonly known as the world’s largest sovereign wealth fund and homegrown financial services giant Motilal Oswal are set to anchor Zepto’s ₹11,000 crore IPO, together expected to account for 40% to 45% of the anchor book. The development confirms that institutional demand for the quick commerce startup’s public offering is strong enough to absorb a listing at a valuation that is meaningfully below its peak private market price.
The IPO is estimated to value Zepto at $4.3 billion pre-money and $5.1 billion post-money, a 27% decrease from the $7 billion valuation the business achieved in its October 2025 Series H round spearheaded by CalPERS. That valuation reset reflects two issues that investors have continually considered: the company’s continuous cash burn and an uncertain road to consolidated profitability in a fiercely competitive rapid commerce market. Despite these concerns, the anchor book is apparently close to completion, with domestic institutional investors entering the lineup alongside the two headline names.
“Zepto IPO: Norges Bank and Motilal Oswal set to anchor Zepto’s ₹11,000 crore IPO, together accounting for 40-45% of the anchor book. IPO values Zepto at $4.3 bn pre-money and $5.1 bn post-money — a 27% discount to the $7 bn private valuation from October 2025.”~Inc42
A 27% Valuation Reset And Why Investors Are Still Willing?
The gap between Zepto’s $7 billion private valuation and the $5.1 billion post-money IPO figure is significant but not surprising given where market sentiment currently sits. Profitability concerns have weighed on quick commerce sector valuations globally. Zepto’s adjusted EBITDA loss per order nearly halved in FY26, and the company handled 210 million orders between January and March 2026 but the business remains loss-making at the consolidated level, and investors applying a public market lens have priced that reality in.
The IPO structure comprises a fresh issue of shares worth ₹8,010 crore alongside an offer for sale of 11.35 crore equity shares by existing investors. The fresh issue proceeds are expected to fund dark store expansion, technology investment, and general corporate purposes with some portion also going toward the competitive marketing spend that quick commerce companies must sustain to retain and grow their customer bases.
Zepto’s revenue from operations for FY26 came in at ₹22,624 crore, a figure that gives the $5.1 billion post-money valuation a price-to-sales ratio of roughly 1.6x, relatively modest for a high-growth consumer internet company that has been doubling revenue year-on-year for three consecutive years.
“Zepto IPO valuation set at about $4.3 billion pre-money and $5.1 billion post-money — 27% below the company’s last private round. Norway’s sovereign wealth fund Norges and Motilal Oswal expected to anchor 40-45% of the book.”~Bloomberg
Motilal Oswal’s Long Relationship With Zepto:
The addition of Motilal Oswal in Zepto’s anchor book is not a new partnership; rather, it is the continuation of a long and growing investing philosophy. Motilal Oswal’s Private Wealth division supported Zepto’s $350 million domestic investment round in late 2024. Motilal Oswal founders Motilal Oswal and Raamdeo Agrawal each contributed $50 million to Zepto through secondary share acquisitions in May 2025. The business then led a $250 million secondary round, which comprised Edelweiss and Hero FinCorp. Raamdeo Agrawal has been one of the most prominent supporters of Zepto as a long-term investment in India’s institutional investor community.
For Motilal Oswal, anchoring the IPO at $5.1 billion represents a valuation lower than the $5.5 billion entry price implied by some of its earlier transactions. But the firm has been consistent in its conviction that Zepto’s market share position, dark store density, and advertising revenue growth trajectory make it a compelling long-term holding and has backed that view with increasingly large capital commitments across each stage of the company’s pre-IPO journey.
Norges Bank Investment Management, which manages Norway’s approximately $1.7 trillion sovereign wealth fund, has a long track record of investing in high-quality Indian businesses. Its participation in Zepto’s IPO anchor book places a globally recognised institutional stamp of credibility on the offering at a moment when the valuation conversation is sensitive.
“Zepto IPO: Norges and Motilal Oswal to together anchor 40-45% of the IPO book. IPO size $800 million at $5.1 bn post-money valuation, a significant step down from $7 bn last private round. Anchor book nearing completion with domestic institutions also participating.”~ET NOW
CCI Probe, ED Notices, And The Risk Factors Ahead Of Opening:
The strong institutional anchor interest does not erase the risk disclosures that will feature prominently in Zepto’s prospectus. Both co-founders – Aadit Palicha and Kaivalya Vohra received notices from the Enforcement Directorate under FEMA earlier this year, disclosed in the company’s updated DRHP. The company also faces a Competition Commission of India probe into allegations of predatory pricing in quick commerce. These legal overhangs will be carefully reviewed by retail investors and their financial advisers once the offer opens for public subscription.
The IPO is targeting a listing on BSE and NSE before July 31, 2026, a deadline that creates time pressure on the remaining procedural steps, including the price band announcement, the opening of the anchor investor book on the day before subscription opens, and the three-day retail and institutional subscription window. If the listing proceeds on schedule, Zepto would become India’s first quick commerce-focused listed company to debut at this scale joining Eternal, which owns Blinkit, and Swiggy’s Instamart as the third publicly traceable player in the sector.
