Zepto to delay IPO by 2-3 quarters, CEO tells staff

MUMBAI: Zepto will defer its public listing by two to three quarters, co-founder & CEO Aadit Palicha told employees in a town hall on Friday, people familiar with the matter said. The quick commerce startup which was initially eyeing a listing around July has stalled the process after getting a tepid response from investors over valuation.“Palicha said that the company should be able to get listed in 2-3 quarters. Refiling will not be needed as the firm has approvals to list till Nov next year,” said a person aware of the townhall discussions.Domestic investors were valuing Zepto at around $3-3.5 billion, over 50% lower than its last valuation of $7 billion at which it raised $450 million in funding in Oct last year. The startup is instead looking to raise about Rs 1,000 crore (around $105 million) in pre-IPO funding for now, TOI had reported on Friday. The company is eyeing a lower valuation of around $4-4.5 billion for the investment. The idea is to get backing from domestic investors, said a person aware of the discussions. It is likely to trim the issue size originally targeted at up to Rs 8,010 crore through a fresh issue of shares.Get the latest Business News and Live updates. Download the TOI app.