Zepto IPO: Raamdeo Agrawal says it was premature for the quick-commerce firm to tap public market. Here’s why

Market veteran Raamdeo Agrawal, who is an investor in Zepto, called the quick-commerce company's IPO plans premature after it delayed its plans to debut on Dalal Street amid valuation concerns.

Earlier this month, Zepto deferred its proposed IPO after agreeing with major shareholders to close a pre-IPO equity funding round. The move followed discussions around pricing the IPO at a valuation significantly below its last private round, The Economic Times learnt.

The valuation under discussion was around $2.5-3 billion, less than half the $7 billion valuation at which Zepto raised $450 million in October 2025 in a round led by US-based pension fund Calpers.


In an interview with The Economic Times, Motilal Oswal Financial Services Chairman Raamdeo Agrawal said the message from Zepto’s IPO delay is clear: “Till companies are actually profitable, or very close to becoming profitable within a visible timeframe, they should not tap the public market. Because it is very difficult to make the public market understand the underlying value,” he said.

The market veteran highlighted that public markets are all about “earnings, earnings and earnings”, with companies required to report them every quarter. “You could be growing at 100%, and so there will be a cost of acquisition and, hence, there will be some losses. A large private investor can understand that; the public market cannot,” he said.

Agrawal also noted that mutual fund investors must mark their portfolios to market daily and may therefore be reluctant to invest at a valuation that could result in a mark-to-market loss the next day. “So my sense is that maybe it was a little premature for the company to tap the public market, and that too at this scale. They must have learnt from this,” he said.

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Raamdeo Agrawal on Zepto IPO

“Whenever something fails like this, I feel bad. You don't want any entrepreneur to go through this kind of pain. Whether my investment is a failure will be decided after 10 years, not now,” the market veteran said, adding that it is difficult to see a company he has invested in go through such challenges.

Dalal Street investor and billionaire Raamdeo Agrawal picked up a stake in Zepto in his personal capacity. The quick-commerce company had been preparing to list at a time when the sector remains one of India's most closely watched consumer internet themes.

Quick commerce has grown rapidly, driven by frequent grocery orders, faster delivery promises and heavy investments in dark stores. However, public market investors appear to be taking a harder look at the cost of this growth.

Zepto's IPO will comprise a fresh issue of shares worth Rs 8,010 crore and an offer-for-sale (OFS) of nearly 11.35 crore shares by existing shareholders, according to its updated prospectus. The five-year-old company had confidentially filed its IPO papers with market regulator SEBI in December 2025 and received the regulator's approval in May this year.

15% returns from equities

Overall, Agrawal sees 15% annual returns from Indian equities as the most likely outcome over the next five years. He expects the Indian economy to grow at 7.5-8.5%, while corporate profits could grow at 13-14%.

“So the index itself should give 12-14%,” he added.

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(With inputs from agencies)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)