Zepto has paused its planned IPO and is instead selling shares privately to large investors, saying the money will strengthen its balance sheet and let it stay focused on execution, according to Sankalp Phartiyal at Bloomberg. The Bangalore-based grocery delivery company hit a $7 billion valuation at its peak but couldn't sell would-be public shareholders on that number, and even a raise pitched at around a $3 billion valuation to domestic mutual funds proved difficult. Zepto took the private route rather than accept the lower price tag and plans to return to the market later. Public investors in India have grown much more reluctant to fund businesses running on heavy cash burn against future returns, with Paytm's post-listing slide still fresh in mind.
