Zepto, the quick commerce startup founded by Aadit Palicha, has reduced its initial public offering valuation by nearly half. The company now targets a market value of about $3 billion or ₹29,000 crore, compared with the $7 billion or ₹60,000 crore valuation it held less than a year ago.
This sharp cut follows strong resistance from domestic mutual funds and insurance firms, which demanded a markdown of nearly 40% from earlier expectations. Zepto received approval from the Securities and Exchange Board of India in April and is preparing to raise around ₹5,000 crore through a fresh issue, with a smaller offer for sale component.
The IPO plan includes an anchor book of ₹2,300 crore, institutional investors at ₹1,530 crore, high net worth individuals at ₹766 crore, and retail investors at ₹511 crore. Final allocations will depend on investor demand.
Earlier drafts had suggested raising ₹8,010 crore along with a larger sale by existing investors such as Nexus Ventures and Kaiser Permanente. The reset highlights growing caution toward new age technology listings, especially after weak post listing performance of peers like Swiggy, which trades 35% below its IPO price.
Zepto continues to focus on quick commerce, delivering groceries, electronics, and essentials, without entering food delivery. Bankers and investors are now working to secure commitments from wealthy individuals and family offices to ensure a smooth listing.