According to media sources, Zepto, a platform for quick commerce, has temporarily halted its initial public offering (IPO) and is instead attempting to collect more than Rs 1,000 crore through a pre-IPO placement. For the investment, the firm is aiming for a valuation of about $4–$4.5 billion.
Disputes over the company’s value allegedly put a halt to its planned public offering. The company reportedly reduced its first public offering (IPO) size from Rs 8,000 crore to between Rs 5,000 and Rs 6,000 crore after realising it needed less capital.
Following the funding round, the company was valued at between USD 2.5 billion and USD 3 billion by incoming investors, primarily domestic mutual funds. This is far lower than the USD 5 billion valuation that had been anticipated, according to the reports.
The pre-IPO investment round is now being considered by the company. Reports indicate that previous investors such as Glade Brook, General Catalyst, Goodwater Capital, Nexus Venture Partners, and Nexus will reportedly participate. Businesses planning an initial public offering (IPO) in India can use pre-IPO placements to raise up to 20% of their planned new issue, according to the Securities and Exchange Board of India (Sebi).
According to additional reports, the funds raised through this method cannot be used for the fresh issue portion of the initial public offering (IPO). In June, Zepto revised its share offering documents and submitted them to the Sebi in preparation for an initial public offering (IPO). The business intends to put the money into a larger dark-store network, upgrade its IT infrastructure, and look for acquisition opportunities.
Image: BS
