Indian quick-commerce firm Zepto is preparing to significantly reduce the size of its initial public offering and lower its valuation expectations, according to sources familiar with the matter.
The move comes as the company continues negotiations with anchor investors, seeking to align its private market worth with the more conservative demands of public market participants.
Handelsavisen previously reported that Zepto had targeted a valuation of approximately $3 billion, a sharp decline from its peak private valuation of $7 billion.
The recalibration reflects a broader cooling in investor sentiment toward high-growth technology IPOs, where buyers have grown wary of stretched valuations.
Zepto’s decision to shrink the offering size is a strategic attempt to ensure sufficient demand and pricing stability at launch, rather than risking a poorly received debut at higher levels.
This development marks a further retreat from the company’s earlier ambitions.
Handelsavisen previously reported that Zepto had targeted a valuation of approximately $3 billion, a sharp decline from its peak private valuation of $7 billion.