MUMBAI: Zepto is looking to raise about Rs 1,000 crore (around $105 million) in pre-IPO funding, delaying its listing plans for now, people familiar with the matter said.The company is eyeing a valuation of around $4-4.5 billion for the investment, over 30% lower than its last valuation of $7 billion at which it had raised $450 million in funding in Oct last year. “Zepto has received interest from existing investors for the round. For the company, the priority is to get backing from domestic investors,” said a person aware of the discussions. Zepto declined to comment.Currently, the company’s domestic shareholding stands at over 40%.
The quick commerce startup was initially targeting a public listing by July but differences over valuation stalled the process.Zepto, which had tempered its IPO valuation expectation to around $5.1 billion was getting valued at around $3-3.5 billion from domestic investors. Foreign investors had indicated interest at a pre-money valuation of $4.5 billion, sources had said earlier.It is also likely to trim the issue size originally targeted at up to Rs 8,010 crore through a fresh issue of shares. Zepto joins fintech peer PhonePe which also paused its IPO plans partly over valuation mismatch.The company plans to close the pre-IPO round in a couple of weeks after which it will have to file RHP with Sebi.Zepto’s IPO comes amid rising competition in the quick delivery space making investors wary of long-term growth prospects. Amazon and Flipkart are ramping up their footprint aggressively.
