Top funds demand deeper valuation cut for Zepto IPO

Zepto is struggling to get top mutual funds and domestic insurers on board for its planned IPO of up to around 8,010 crore, with the company already offering to cut its valuation expectation to 4-5 billion dollars, down from a peak of 7 billion dollars in October 2025 when CalPERS invested 450 million dollars. Fund managers are pushing for valuations 30-40% lower than the proposed range, citing concerns over benchmarking against listed peers Eternal and Swiggy given Zepto's absence of a food delivery business, and weak post-listing performance of new-age IPOs such as Swiggy, which trades about 35% below its issue price at around 251 rupees.