Quick-commerce startup Zepto is preparing for a major step toward its stock market debut. The company is planning an internal funding round at a valuation of about $5 billion, signalling strong investor confidence ahead of a possible initial public offering (IPO).
The development is important because Zepto is one of India’s fastest-growing quick-commerce firms. A higher valuation and internal share sale could set the stage for one of the most watched tech IPOs in the coming years.
Zepto Targets $5 Billion Valuation in Internal Round
Zepto is planning a pre-IPO internal funding round that could value the company at around $5 billion.
An internal round typically involves existing investors or employees buying additional shares. It allows early backers and staff to increase their stake while giving the company a fresh valuation benchmark before a public listing.
The proposed valuation would mark a significant jump from the company’s earlier funding rounds and reflect the rapid growth of the quick-commerce sector in India.
SoftBank Among Key Backers
Zepto counts major global investors among its backers, including SoftBank’s Vision Fund.
SoftBank’s involvement adds credibility to the startup’s growth story, as the Japanese investment giant has backed several major technology companies worldwide.
The presence of large institutional investors also signals that the company is positioning itself for a potential IPO within the next one to two years.
What a Pre-IPO Internal Round Means
A pre-IPO internal funding round is usually seen as a preparation step before going public.
In such rounds, existing investors may increase their stake, employees can get liquidity through share sales, and the company establishes a fresh valuation. It also signals readiness for public market scrutiny.
For Zepto, the internal round could help clean up its cap table and align stakeholders before launching an IPO.
Zepto’s Rapid Rise in India’s Quick-Commerce Market
Founded in 2021, Zepto has grown quickly in the hyper-competitive quick-commerce segment.
The company promises 10-minute grocery deliveries and competes directly with players such as Blinkit, Swiggy Instamart, and BigBasket’s BB Now.
Within just a few years, Zepto has expanded to multiple major cities and built a network of dark stores to support its rapid delivery model.
Revenue Growth and Expansion Strategy
Zepto has focused heavily on scaling operations and increasing order volumes.
Its growth strategy includes expanding into new cities and neighbourhoods, increasing the number of dark stores, improving supply chain efficiency, and boosting private-label products.
The company has also invested in technology and logistics to improve delivery times and customer experience.
Why the $5 Billion Valuation Matters
If the internal round is completed at $5 billion, it would place Zepto among the most valuable quick-commerce startups in India.
The higher valuation reflects strong investor interest in quick-commerce, rapid growth in online grocery demand, expansion into new markets, and improved unit economics in the sector.
It would also bring Zepto closer to the valuation levels of major competitors.
IPO Plans: What to Expect
While the company has not officially announced an IPO date, the internal round suggests preparations are underway.
Typically, startups take several steps before an IPO. They complete internal funding or secondary share sales, strengthen financials and governance, appoint investment banks, and file draft IPO papers.
Industry observers believe Zepto could explore a public listing in 2026 or 2027, depending on market conditions.
Competition in the Quick-Commerce Space
Zepto operates in one of the most competitive segments of India’s startup ecosystem.
Its main rivals include Blinkit, backed by Zomato, Swiggy Instamart, part of Swiggy’s ecosystem, and BB Now, owned by Tata Group’s BigBasket.
All major players are investing heavily in logistics, dark stores, and discounts to capture market share. The competition has led to rapid growth but also high operating costs across the industry.
Focus on Profitability and Efficiency
Over the past year, quick-commerce companies have shifted focus from aggressive expansion to improving profitability.
Zepto has reportedly optimised delivery zones, improved inventory planning, reduced wastage and logistics costs, and increased average order value.
These steps are important for building a strong financial profile before going public.
Investor Sentiment Toward Indian Tech IPOs
The Indian public markets have shown growing interest in tech startups over the past two years.
Successful listings in sectors like fintech, e-commerce, and food delivery have encouraged venture-backed companies to consider IPOs.
However, investors are now focusing more on profitability, cash flow, and sustainable growth. This means startups like Zepto will need to show strong financial performance before listing.
Employee Liquidity and Stakeholder Alignment
Internal funding rounds often provide liquidity options for early employees.
In Zepto’s case, the pre-IPO round may allow employees to sell a portion of their shares, reward early team members, and align stakeholders ahead of the IPO.
Such steps are common in fast-growing startups approaching the public markets.
What This Means for India’s Startup Ecosystem
Zepto’s potential $5 billion valuation highlights continued investor confidence in India’s digital economy.
It also shows that quick-commerce remains a key growth sector, global investors are still betting on Indian startups, and IPO pipelines for tech companies remain active.
A successful Zepto listing could pave the way for more startup IPOs in the coming years.
Key Numbers to Know
The target valuation is $5 billion. The company operates in the quick-commerce sector and was founded in 2021. Its key investor is SoftBank Vision Fund. Industry estimates suggest a possible IPO window between 2026 and 2027.
The Bottom Line
SoftBank-backed Zepto is planning a pre-IPO internal funding round at a $5 billion valuation, marking a major step toward a possible public listing.
The move reflects strong investor confidence in the company’s growth and the broader quick-commerce market in India.
If the internal round succeeds, Zepto could become one of the most closely watched tech IPO candidates in the country over the next two years.
Disclaimer: The information presented in this article is intended for general informational purposes only. While every effort is made to ensure accuracy, completeness, and timeliness, data such as prices, market figures, government notifications, weather updates, holiday announcements, and public advisories are subject to change and may vary based on location and official revisions. Readers are strongly encouraged to verify details from relevant official sources before making financial, investment, career, travel, or personal decisions. This publication does not provide financial, investment, legal, or professional advice and shall not be held liable for any losses, damages, or actions taken in reliance on the information provided.
Last Updated on Wednesday, February 11, 2026 1:52 pm by Startup Magazine Team
About The Author
