Zepto pushes back its stock market debut by up to three quarters

Zepto's CEO Aadit Palicha announced at a staff town hall that the company will postpone its IPO by two to three quarters after investors offered a lower valuation.

During a town-hall session, Zepto co-founder and chief executive Aadit Palicha told staff that the company will defer its public offering by two to three quarters, moving the timeline from an anticipated July debut to a later date within the current fiscal year. The decision was driven by a tepid reaction from investors, who were pricing the startup at about $3-3.5 billion, a drop of more than half from its $7 billion valuation recorded during a $450 million raise last October.

To bridge the gap, Zepto intends to secure roughly Rs 1,000 crore (about $105 million) in pre-IPO capital, targeting a valuation of $4-4.5 billion and focusing on domestic investors. The firm already holds the necessary approvals to list through November next year, meaning it can proceed without filing a new prospectus. The original plan to issue up to Rs 8,010 crore of new shares is likely to be scaled back. This adjustment reflects broader market caution toward high-growth Indian tech companies.