Indian fast-delivery company Zepto Ltd. is seeking a valuation in an initial public offering sharply below its $7 billion peak as concerns over cash burn temper optimism around the industry and raise questions about the firm’s path to profitability.
Foreign investors have indicated interest at a pre-money valuation of about $4.5 billion, people familiar with the matter said, declining to be named as the discussions are private. Some domestic institutional investors are valuing the company between $3 billion and $3.5 billion, they added. That compares with the $7 billion valuation it secured during a fundraise last October.
